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Nathalie Sonnac

Media and advertising: on the interconnexion of two markets

Le Temps des médias n°6, printemps 2006, p.49-58

The media developed advertising as a revenue source - as of 1836 insofar as newspapers are concerned - so as to help cover ever-increasing production costs and so as to inform readers for a cost-price and a subscription-fee accessible to the greatest possible number of readers/buyers. The role of advertising extends further : it provides advertisers with an influence over newspaper content and creates and interaction between the two industries. The positive and negative externalities generated by this market structure has specific economic consequences in relation to price structure, level and the advertising/content ratio. Furthermore, this market structure has distinctive consequences for the competition between media companies, and in terms of the diversity of newspaper titles and pluralism. DrapeauFrancais

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