Competition in the News Industry: Fighting Aggregators with Versions and Links

36 Pages Posted: 3 Nov 2012

See all articles by Joan Calzada

Joan Calzada

University of Barcelona - Department of Political Economics

Guillem Ordonez-Calafi

University of Bristol - Department of Finance and Accounting

Date Written: September 30, 2012

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 signi…ficant spillovers for its rival. Second, we analyze situations where 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 …firms contents. Finally, we show that when the …firm competes against a search engine, its linking and versioning strategies depend on the amount of trace 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.

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

JEL Classification: D83, D85, L12, L22, L86, M31

Suggested Citation

Calzada, Joan and Ordonez-Calafi, Guillem, Competition in the News Industry: Fighting Aggregators with Versions and Links (September 30, 2012). NET Institute Working Paper No. 12-22, Available at SSRN: https://ssrn.com/abstract=2164399 or http://dx.doi.org/10.2139/ssrn.2164399

Joan Calzada (Contact Author)

University of Barcelona - Department of Political Economics ( email )

Av. Diagonal, 696
Barcelona, 08034
Spain
+34 93 402 1933 (Phone)
+34 93 402 4573 (Fax)

Guillem Ordonez-Calafi

University of Bristol - Department of Finance and Accounting ( email )

United States

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