Digital markets and media

Modern industrial economics has a lot to say about how digital markets and media work. Platforms are characterised by the existence of multiple market sides, whose interactions must be taken into account when designing products and setting prices. Direct and indirect network effects mean that some market sides may have to be subsidised in order to make a profit from other market sides, as is the case with newspapers, television and radio channels, or much of the free content online.

Strategy and pricing in multi-sided markets. Digital communication technologies represent major challenges for media firms. We help you to find the optimal pricing strategy in highly complex, often multi-sided markets with strong network effects, especially if regulatory requirements have to be met.

Mergers and abuse of dominance allegations. Because of their particular pricing strategies, media firms have frequently become the target of investigations from competition authorities in the past. We support our clients in formulating the business reality in media markets, which typically comes with large benefits to consumers and strong competitive constraints from all kinds of alternatives.

Royalties. Prices of copyrighted material may be subject to regulation. We develop economic frameworks to model arm’s length negotiations between creators and distributors, resulting in fair access charges.