Tuesday, September 22. 2009A 5% takeup of paid news - Freemium Ahoy?Trackbacks
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I haven't done the analysis, but it's entirely possible that the BBC paradoxically makes it easier for Murdoch (or other) to hold together a pay-for-news cartel in the UK.
Without the BBC, a cartel would perhaps crumble because there's always an individual incentive for cartel members to break away and try to take the lion's share of the advertising funded market. Classic prisoners' dilemma territory. With the BBC there, said market is just not as attractive, any pageviews get shared somewhat with the BBC. So the incentives to break away from the cartel could be lower. Of course, this depends on the size of that market compared to the pay-per-view market, number of players, and so on. Someone with a better handle on the particular numbers here could better analyse it. But it's not immediately obvious to me that the BBC would be a bad thing for the cartel instigators here.
Interesting thought Ben, and you may be right re game theory. Also, if you took the BBC away its not clear the amount of Ad money in the system goes up, so they may find more inventory is competing for the cash as new commercial players fill the BBC space, reducing Ad rates.
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