Magazines and their Companion Websites: Competing Outlet Channels?

Ulrich Kaiser

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Consumer Market Behavior and Pricing Journalism and Media Studies Media and Digital Communication

Abstract

This paper provides empirical evidence for the widespread belief that a magazine's companion website induces channel competition on its print version. The analysis is based on aggregated quarterly magazine-specific data on circulation, a broad variety of magazine characteristics, consumer characteristics and information on a magazine's website presence.The data spans the period I/1996 to IV/2004. Nested logit-type models of demand for differentiated products are used in the empirical analysis. A main result of this paper is that magazines that run an online companion on average lose 4.2 percent of their potential consumers. This effect varies substantially across different consumer age groups and across time.

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References

1995Automobile Prices in Market Equilibrium 1994Estimating Discrete-Choice Models of Product Differentiation 1992Discrete Choice Theory of Product Differentiation 1997Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces 1998Measuring Market Power in the Ready-to-Eat Cereal Industry 1997Exploring the Implications of the Internet for Consumer Marketing 2001Consumer Decision‐making at an Internet Shopbot: Brand Still Matters 2007Valuing New Goods in a Model with Complementarity: Online Newspapers

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2005The Effect of a Magazine's Digital Content on its Print Circulation: Cannibalization or Complementarity?2009Complementing consumer magazine brands with internet extensions?2010To Bundle or Not to Bundle? How Western European Newspapers Package Their Online Content 2012Magazine “Companion Websites” and the Demand for Newsstand Sales and Subscriptions 2023The Media Systems in Europe

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