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030910 Hal Varian FTC Preso

030910 Hal Varian FTC Preso

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Published by danmartingoogle
Revised edition available here: http://www.scribd.com/doc/28470293/
Revised edition available here: http://www.scribd.com/doc/28470293/

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Published by: danmartingoogle on Mar 09, 2010
Copyright:Attribution Non-commercial

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08/09/2013

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Google Confidential and Proprietary
1
Newspaper economics
Online and offline
Hal VarianMarch 9, 2010
 
Economics of newspapers
Review some of the economic facts about newspapers
 – 
Revenues and costs
 – 
Advertising level, change and composition
 – 
Examine how internet has impacted ad revenue
 – 
Examine how internet has impacted reader use patterns
Speculate about what might turn things around
 – 
Business opportunities
 – 
Technological opportunities
Data sources
 – 
US Statistical Abstract
 – 
Newspaper Association of America Trends and Numbers website
 – 
Pew Foundation
 – 
Academic books and publications
 
Revenue and costs
Advertising80Retail40%Classified32%National 8%Sales20Newsstand17%Subscription 3%Total100%100Core35%Promotion12%Editorial14%Administrative 9%Prodn & Distn52%Production20%Distribution14%Raw materials18%Total87%87%
Source: Vogel, H, Entertainment Industry Economics, 7th edition, page 343
Revenue (%)Costs as % of revenueInternet distributioncould cut productioncosts by at least half.

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