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Magazines and their Companion Websites: Competing Outlet Channels?

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  • Kaiser Ulrich

    (University of Southern Denmark at Odense)

Abstract

This paper provides empirical evidence for the widespread belief that a magazine's companion website induces channel competition on its print version. The analysis is based on aggregated quarterly magazine-specific data on circulation, a broad variety of magazine characteristics, consumer characteristics and information on a magazine's website presence.The data spans the period I/1996 to IV/2004. Nested logit-type models of demand for differentiated products are used in the empirical analysis. A main result of this paper is that magazines that run an online companion on average lose 4.2 percent of their potential consumers. This effect varies substantially across different consumer age groups and across time.

Suggested Citation

  • Kaiser Ulrich, 2006. "Magazines and their Companion Websites: Competing Outlet Channels?," Review of Marketing Science, De Gruyter, vol. 4(1), pages 1-26, August.
    • Handle: RePEc:bpj:revmkt:v:4:y:2006:i:1:p:1-26:n:3
    DOI: 10.2202/1546-5616.1046
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    2. Robert Seamans & Feng Zhu, 2014. "Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers," Management Science, INFORMS, vol. 60(2), pages 476-493, February.
    3. Michelle Haynes & Steve Thompson & Peter W. Wright, 2014. "New Model Introductions, Cannibalization and Market Stealing: Evidence from Shopbot Data," Manchester School, University of Manchester, vol. 82(4), pages 385-408, July.
    4. Nagler Matthew G., 2007. "Understanding the Internet's Relevance to Media Ownership Policy: A Model of Too Many Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-28, June.
    5. Filistrucchi, L. & Gerardin, D. & van Damme, E.E.C. & Keunen, S. & Klein, T.J. & Michielsen, T.O. & Wileur, J., 2010. "Mergers in Two-Sided Markets - A Report to the NMa," Other publications TiSEM f901d1fe-8878-444e-a685-8, Tilburg University, School of Economics and Management.
    6. Stühmeier, Torben, 2011. "Das Leistungsschutzrecht für Presseverleger: Eine ordnungspolitische Analyse," DICE Ordnungspolitische Perspektiven 12, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Ramboll & The Evaluation Partnership & Europe Economics, 2015. "Economic Study on Publications on all Physical Means of Support and Electronic Publications in the context of VAT," Taxation Studies 0057, Directorate General Taxation and Customs Union, European Commission.
    8. Elena Argentesi & Lapo Filistrucchi, 2007. "Estimating market power in a two-sided market: The case of newspapers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1247-1266.
    9. Ambarish Chandra & Ulrich Kaiser, 2014. "Targeted Advertising in Magazine Markets and the Advent of the Internet," Management Science, INFORMS, vol. 60(7), pages 1829-1843, July.
    10. Liang Che-Yuan & Nordin Mattias, 2013. "The Internet, News Consumption, and Political Attitudes – Evidence for Sweden," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 1071-1093, September.
    11. Utku Kose, & Selcuk Sert, 2017. "Improving Content Marketing Processes With The Approaches By Artificial Intelligence," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 6(1), pages 1-31, January.
    12. Dewenter, Ralf & Haucap, Justus, 2013. "Ökonomische Auswirkungen der Einführung eines Leistungsschutzrechts für Presseinhalte im Internet (Leistungsschutzrecht für Presseverleger)," DICE Ordnungspolitische Perspektiven 36, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    13. Sung, Nakil & Kim, Jaekyeong, 2020. "Does the internet kill newspapers? The case of South Korea," Telecommunications Policy, Elsevier, vol. 44(4).
    14. Simon, Daniel H. & Kadiyali, Vrinda, 2007. "The effect of a magazine's free digital content on its print circulation: Cannibalization or complementarity?," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 344-361, October.
    15. George Lisa M, 2008. "The Internet and the Market for Daily Newspapers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-33, July.
    16. Sung, Nakil & Kwack, Eunkyoung, 2016. "IPTV's videos on demand for television programs, their usage patterns, and inter-channel relationship in Korea," Telecommunications Policy, Elsevier, vol. 40(10), pages 1064-1076.

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