Value creation in interdependent digital and analogue markets

Abstract

ABSTRACT This study investigates how the value propositions in interdependent digital and analogue markets differ from each other. For this purpose, we conducted a content analysis and comparative case-study of four Dutch journalistic platforms that operate in markets for print and online advertising and paying audiences (subscriptions or memberships). First, we find that in digital (online) markets the value propositions on both market sides are more fused than in analogue markets. Second, we find that this is the reason for online platforms that serve the paying audiences, to offer advertising-free content. This suggests that there is not always a mutual dependency of the two market-sides as platform scholars assume, but that there may be a tension arising from interdependency, where some users may actually be attracted to the absence of the other market-side (advertising) and indirect network effect exploitation.