Can print news media firms make good deals with Internet portals? A search for mutually beneficial deals

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The platform for the consumption of newspaper content, since 2000, has been shifted from the traditional printed newspapers to the Internet. This resulted in rapid declines in the reach of newspapers worldwide. When reading news stories online, people in Korea use Internet portal sites more often than newspaper companies’ websites. Internet portals share some of their revenues with newspaper firms on individual contract basis, but newspaper firms keep complaining that Internet portals are not providing a fair share with them. This paper views that the unfair revenue sharing between Internet portals and newspaper companies stems fundamentally from the imbalance of negotiation power between the two sides. This paper investigates whether newspaper firms can make coalitions among themselves to increase their negotiation power against Internet portals, and examines the stability of such coalitions. This paper find that internet news media firms can make better deals with internet portal by making stable coalitions, but it is also found that without commitment device, stable coalitions cannot be sustained. In short, newspaper firms should make revenue sharing contract with Internet portal not individually but as a group, and the stability of coalitions can be achieved with a commitment device, suggested in the paper.
International Telecommunications Society
Issue Date

2015 European Regional ITS Conference

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MG-Conference Papers(학술회의논문)
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