A Simple Model of Advertising and Subscription Fees
نویسندگان
چکیده
Traditional and modern mass media – such as television, newspapers, magazines, and Internet sites – typically derive the bulk of their revenues from advertisements rather than subscriptions. We present a simple model that explains this phenomenon. 2000 Elsevier Science S.A. All rights reserved.
منابع مشابه
Content, Advertising, and Circulation in an Optimizing Model of the Media Firm
The paper determines the effects of different influencing variables on the media company’s optimal subscription and advertising prices and editorial content. The company maximizes profit consisting of subscription and advertising revenue, minus the costs of content, advertising, and circulation, by setting the subscription and advertising prices and the amount of editorial content. Subscription...
متن کاملOptimal Policies for E-Commerce Sites with Hybrid Revenue Streams: Differentiated Quality Approach
In last few years, several e-commerce organizations have adopted the strategy of providing two web sites that differ in quality, subscription fee and level of advertisements. Most of these organizations charge a subscription fee for better quality web site and provide free service at the low quality web site. For the free site, the revenue is solely dependent on the advertisements placed at tha...
متن کاملOpen Access as a Crude Solution to a Hold-up Problem in the Two-sided Market for Academic Journals∗
We analyze a model in which journals cannot commit to subscription fees when authors (who prefer low subscription fees because this boosts readership) make submission decisions. A hold-up problem arises, manifested as excessive subscription fees. Open access is a crude attempt to avoid hold up by eliminating subscription fees. We assess the profitability and efficiency of traditional relative t...
متن کاملExclusive vs Overlapping Viewers in Media Markets
This paper investigates competition for advertisers in media markets when viewers can subscribe to multiple channels. A central feature of the model is that channels are monopolists in selling advertising opportunities toward their exclusive viewers, but they can only obtain a competitive price for advertising opportunities to multi-homing viewers. Strategic incentives of firms in this setting ...
متن کاملAttila Ambrus und Markus Reisinger : Exclusive vs Overlapping Viewers in Media Markets
This paper investigates competition for advertisers in media markets when viewers can subscribe to multiple channels. A central feature of the model is that channels are monopolists in selling advertising opportunities toward their exclusive viewers, but they can only obtain a competitive price for advertising opportunities to multi-homing viewers. Strategic incentives of firms in this setting ...
متن کامل