The Effect of the Internet on the Magazine Publishing Industry

The purpose of this paper is to analyze the effect of the Internet on the magazine publishing industry. By combining the views of industrial organization economics and the resource-based view, cross-level analysis is provided at industry and company levels. At the industry level, the Internet has not significantly changed the five forces that shape the nature and state of competition in the magazine publishing industry. At the company level, it is proposed that the Internet does not change the traditional core competencies of magazine publishers. However, dealing with the Internet also means dealing with change. As most media companies have cultures built on consistency, it is proposed that more dynamic capabilities are needed.