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Do Magazines' ”Companion Websites” Cannibalize the Demand for the Print Version?

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Author Info

  • Ulrich Kaiser

    (University of Southern Denmark)

  • Hans Christian Kongsted

    (Department of Economics, University of Copenhagen)

Abstract

We analyze the extent to which visits to a magazine's companion website affects total circulation, subscription, kiosk sales and foreign sales using Granger causality tests on the basis of monthly data for the German magazine market spanning the period January 1998 to September 2005. We find evidence for positive effects of website visits on magazine subscription but negative effects on magazine kiosk sales. Contrary to the widespread belief that the Internet will cannibalize print media markets, our results do not, however, provide evidence for website visits adversely affecting total circulation.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2007-03.

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Length: 28 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:kud:kuieci:2007-03

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Keywords: Granger causality; heterogeneous panel data models; Mean Group Estimation; website visits; magazine circulation;

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References

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  1. Michael D. Smith & Erik Brynjolfsson, 2001. "Consumer Decision-making at an Internet Shopbot: Brand Still Matters," NBER Chapters, in: E-commerce, pages 541-558 National Bureau of Economic Research, Inc.
  2. Lapo Filistrucchi, 2005. "The Impact of Internet on the Market for Daily Newspapers in Italy," Economics Working Papers ECO2005/12, European University Institute.
  3. Matthew Gentzkow, 2006. "Valuing New Goods in a Model with Complementarities: Online Newspapers," NBER Working Papers 12562, National Bureau of Economic Research, Inc.
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Cited by:
  1. Ralf Dewenter & Ulrich Kaiser, 2006. "Horizontale Fusionen auf zweiseitigen Märkten am Beispiel von Printmedien," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(3), pages 335-353, 08.
  2. 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.
  3. 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.
  4. Stühmeier, Torben, 2011. "Das Leistungsschutzrecht für Presseverleger: Eine ordnungspolitische Analyse," DICE Ordnungspolitische Perspektiven 12, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  5. Lapo Filistrucchi, 2005. "The Impact of Internet on the Market for Daily Newspapers in Italy," Economics Working Papers ECO2005/12, European University Institute.
  6. 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.

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