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Competition in the news industry: fighting aggregators with versions and links

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Author Info

  • Joan Calzada

    ()
    (Departament de Política Econòmica, Universitat de Barcelona)

  • Guillem Ordóñez

    ()
    (Departament de Política Econòmica, Universitat de Barcelona)

Abstract

We analyze the linking and versioning strategies of a media firm when facing competition from blogs, search engines and news aggregators. First, we show that when the publisher competes against a blog it is less likely to release a “fighting version” if this generates significant spillovers for its rival. Second, we analyze in which situations a publisher will accept to offer part of its contents to a news aggregator in exchange for financial compensation. We explain that an agreement is possible when the aggregator is not overly dependent on the firm’s contents. Finally, we show that when the firm competes against a search engine, its linking and versioning strategies depend on the amount of traffic it receives from its competitor. The firm can use the search engine as its own low quality version and as a mechanism to expand its market since it gives access to many contents.

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Bibliographic Info

Paper provided by NET Institute in its series Working Papers with number 12-22.

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Length: 34 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:net:wpaper:1222

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Web page: http://www.NETinst.org/

Related research

Keywords: Product segmentation; versioning; linking media market; search engines; news aggregators; Internet;

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References

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  2. 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.
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