78-0609-micropayments - Geoff Riley Eton College...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Geoff Riley Eton College Micropayments and the economics of newspapers Many of the production costs incurred in getting a paper out to customers are fixed in nature including the salaries of journalists and the expenses of owning or leasing printing equipment and distributing newspapers to the wholesale trade. Some costs are variable depending on the size of circulation and also the geographical spread of the distribution network. But the labour intensive nature of traditional print papers makes it expensive for a newspaper to create content especially when it has a sizeable editorial staff of its own. Little wonder that many titles make increasing use of content drawn directly from sources such as the Press Association. Newspapers have always relied on advertising revenue as a way of making money. Circulation wars have been less about driving revenues higher from people who pitch up to buy from the vendor, but more about keeping sales high to stop advertisers migrating to a rival. The marginal cost of printing an extra 100,000 copies is insignificant. With circulation declining and income from classified advertising shrinking fast, newspapers must confront the dilemma of how best to survive. As internet access has widened, broadband speeds have increased and the cost of accessing online news has fallen, most of us can get our daily news and If my economics students are typical, the thought of paying to download a weightless digital product from the web is out of character! There is a vast ocean of freeware, file-sharing
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/08/2012 for the course ECO 51844 taught by Professor Sabet during the Spring '11 term at FIU.

Page1 / 2

78-0609-micropayments - Geoff Riley Eton College...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online