Social Media and the News Industry

Alexandre de Corniere () and Miklos Sarvary ()
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Alexandre de Corniere: Toulouse School of Economics, France
Miklos Sarvary: Columbia Business School, USA

No 17-07, Working Papers from NET Institute

Abstract: The growing influence of internet platforms acting as content aggregators is one of the most important challenges facing the media industry. We develop a parsimonious model to understand the impact of content bundling by a social platform. In our model consumers can access news either directly through a newspaper's website, or indirectly through a platform, which also offers social content. Even though the platform shares revenues with newspapers whose content it publishes, content bundling harms newspapers. Its effect on news quality and news consumption depends on the media market structure and on whether the platform can personalize the content bundle.

Keywords: User-Generated Content (UGC); Media Competition; News Quality (search for similar items in EconPapers)
JEL-codes: L13 L43 L96 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2017-10
New Economics Papers: this item is included in nep-com, nep-cta, nep-mkt, nep-net and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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