Abstract
The Internet has given rise to a new class of multiform (i.e., hybrid) products that can be offered in both offline and online forms, such as music and magazines. The online medium enables bundling, and unbundling, of such products at negligible cost. Focusing on a print magazine publisher, we develop an analytical model to address three questions. Under what product-market conditions should the seller offer the magazine content online? What assortment of online forms (bundle, unbundled modules, or both) is optimal? What are the pricing implications? A key result is that going online is profit enhancing even when the market strongly prefers the print medium and there are no advertising revenues. Under these circumstances, the online modules, rather than the online bundle, better complements the print bundle. Also, the wider the product line, the higher the prices of the individual products.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
