Competing With Whom? Where? And How? A Structural Analysis of the Electronic Newspaper Market

This study analyzes the electronic newspaper's market structure. The market is characterized by low barriers to entry. Based on the information versus advertising and local versus long-distance distinctions, four submarkets are identified. Within each, competition of different natures (intermedia and intramedia) dominates, yet all four markets fall into the monopolistic competitive market structure, whereas firms compete with one another by product differentiation. Under intermedia competition, we suggest electronic newspapers differentiate themselves from traditional media by developing Internet-related features. Under intramedia competition, content matters more.