Abstract
Digital news content on the internet brings individuals access to more news sources than had been possible with traditional media. But at the same time, digital intermediaries such as search engines, news aggregators and social media play an increasing role in linking potential readers to news. The overall effect of digital intermediaries on diversity in news consumption is poorly understood. From a theoretical perspective, economic models of search predict that institutions that reduce the transaction costs of locating preferred content should increase variety in consumption. Yet technology that channels users of Google News and other news aggregators to the most popular sites can at the same time reduce diversity in news consumption. The overall effect of intermediation on diversity in news consumption is thus an empirical question. This project measures the causal effect of search engines, aggregators and other new media institutions on the diversity of news read on the internet. Using monthly, household-level data on visits to news sites from 2002-2010 developed for the project, the study measures the share of news site visits accessed via search and aggregation over time. The study documents the relationship between intermediated news consumption and the number of unique news sites visited, both for the overall population and for minority readers, who benefit more from variety in traditional news markets. The study directly evaluates the role of Google News by measuring how the top stories on Google News affect the way in which viewers access the websites of the relevant news sources. The implications of this research for public policy are substantial. The right of organizations to aggregate news content produced by media firms is actively litigated, most visibly in challenges by the Associated Press against Google and individual bloggers. The policy effect depends crucially on how intermediaries affect consumption. The effect of intermediaries also plays an important role in anti-trust treatment of alliances and mergers between technology firms and content providers, as a key concern with such relationships is their effect on diversity. Diversity is one of the three benchmark goals of the Federal Communications Commission in formulating and modifying its media ownership rules, which are currently under review.
Published Version
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