Polytechnic and design, Vol. 7 No. 1, 2019.
Professional paper
https://doi.org/10.19279/TVZ.PD.2019-7-1-07
THE DIGITIZED CONTENT INDUSTRY CREATES A NEW PARADIGM OF COST THEORY: ZERO MARGINAL COST IN DIGITAL MAGAZINE INDUSTRY
Joško Lozić
orcid.org/0000-0003-2742-0171
; Zagreb University of Applied Sciences, Zagreb, Croatia
Abstract
The aim of this paper is to point to a change
in the paradigm of economic theory of costs
resulting from the development of post-industrial
production and distribution of goods.
Digitization and convergence of production
process have directly influenced the fundamental
changes in production patterns within a large
number of “old” industries. The media industry
hit the strike among the first. By digitizing the
product or producing digital content that replaced
the physical product, direct competition was
created for the media industry products that were
produced and sold on "old" media. By digitizing
content, a large part of the production process has
disappeared, and the marginal costs of producing
additional product units have come close to
zero. The production and distribution of digital
products, where marginal cost is approximately
zero, has particularly hit the publishing industry
and has completely changed the global landscape
of the industry. In this paper, we will treat an
example of zero marginal cost in the journal
industry.
Keywords
magazine industry; media industry; zero marginal cost; post-industrial model
Hrčak ID:
220658
URI
Publication date:
30.4.2019.
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