Free content is supplied for example by internet, TV and a
free newspaper. An increasing use of internet is a crucial factor of long term success,
as it implies a higher supply of free media content. This enlarges the demand
for free content, in other words it reduces the willingness to pay for content
like information and entertainment. This is a big chance for publishers of
free newspapers.
The free newspapers mainly appeal to a young target group. Therefore it is very
important for the long term success that the society is not running out of this target
group. Many European countries have the problem of an ageing society. This
is why the publishers have to be aware of the demographic development constantly
and should always try to locate agglomeration areas of their target group.
Agglomeration areas have another crucial impact on the long term success. To be
attractive for the advertisement space demanders (who are the source of revenue
for the free newspaper publisher) it is most important to have a very high circulation
of the newspaper.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Economic analysis of the free newspaper market
- 2.1 Budget Constraint
- 2.2 Marginal Utility
- 2.3 Demand Curve
- 2.4 Characteristics Approach to Consumer Theory
- 3. Conclusions
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to provide an economic analysis of the success of free newspapers in the UK. It examines the market dynamics, consumer behavior, and revenue models associated with this industry. The study seeks to understand how publishers can achieve profitability in a competitive market where content is increasingly free.
- Economic analysis of the free newspaper market
- Consumer behavior and preferences regarding free content
- Profitability and revenue models in the free newspaper market
- Market dynamics and entry barriers for free newspapers
- The role of advertising revenue in sustaining free newspapers
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction
This chapter provides an overview of the UK newspaper market, including the main competitors within the market, focusing on the free newspaper sector. It outlines the key players and their respective market positions.
2. Economic analysis of the free newspaper market
This chapter explores the economic factors driving the success of free newspapers. It examines the publisher's perspective, focusing on their profit maximization strategies, cost minimization, and market entry barriers. The chapter delves into consumer theory, analyzing consumer preferences and decision-making regarding free newspapers and their characteristics.
Schlüsselwörter (Keywords)
Free newspapers, advertising revenue, consumer behavior, market dynamics, publisher strategies, profitability, budget constraint, marginal utility, demand curve, characteristics approach, media content, information, entertainment, competition, market entry barriers.
Frequently Asked Questions: Economic Analysis of Free Newspapers
Why are free newspapers successful in the digital age?
Free newspapers benefit from a reduced "willingness to pay" for content caused by the internet. They target young audiences in agglomeration areas where high circulation is possible.
How do free newspapers generate revenue?
The primary source of revenue is advertising. Advertisers demand space in publications with very high circulation to reach a large number of potential customers.
What is the "Characteristics Approach" to consumer theory?
This approach analyzes consumer preferences based on the specific attributes or characteristics of the newspaper (e.g., format, content type) rather than just the product itself.
Why is demographic development a challenge for free papers?
Many European countries have ageing societies. Since free newspapers mainly appeal to younger target groups, publishers must constantly locate areas where these groups are concentrated.
What are the main entry barriers for the free newspaper market?
Key barriers include high initial printing and distribution costs, and the need to achieve a massive circulation quickly to attract major advertisers.
What role does the internet play in this market?
The internet increases the supply of free content, which paradoxically helps free newspapers as it normalizes the expectation that information and entertainment should be free of charge.
- Arbeit zitieren
- Maxim Rabkin (Autor:in), 2008, Economic Analysis of the Great Success of Free Newspapers, München, GRIN Verlag, https://www.hausarbeiten.de/document/165183
