How do firms make money selling digital goods online?

Marketing Letters, Volume 25, Issue 3, 2014, Pages 331-341.

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Keywords:
Internet Digital goods Online advertising Revenue model PaywallMore(4+)

Abstract:

We review research on revenue models used by online firms who offer digital goods. Such goods are non-rival, have near zero marginal cost of production and distribution, low marginal cost of consumer search, and low transaction costs. Additionally, firms can easily observe and measure consumer behavior. We start by asking what consumers c...More

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