Joint Operating Agreement Newspapers Definition

In essence, two factors more than a daily newspaper make it more difficult to publish successfully in an internal market. One of them is that economies of scale strongly favor the larger of the two newspapers. Second, many advertisers only run ads in the largest newspapers circulating in a market, making it difficult for smaller newspapers to compete with larger ones for advertising money. Newspaper JOAs reduce the high cost of newspaper production and distribution, as well as the marketing and promotion costs associated with commercial competition. Joint operating agreements do not necessarily involve breaches of cartels. Only when joint venture agreements involve price cartel, market sharing and profit-sharing do they infringe US anti-dominant law. The OJ which is limited to combined operations for the purposes of cost reduction and economies of scale shall be permitted. In some cases, Congress has passed specific laws to provide for anti-cartel and abuse of dominance waivers for joint enterprise agreements in certain sectors. In 1970, Congress passed the Newspaper Preservation Act, which granted a anti-dominant exemption for joint venture agreements between two dailies competing in the same geographic markets. In all the JOAs, parties retain an aspect of their original organization, whether it is the editorial voice, religious affiliation, vision or the ability to exploit the company`s resources. All parties participate in the financial risks of the joint venture and acquire the potential for an increased market presence and thus an increase in profits. The Newspaper Retention Act was presented as a discharge measure to allow several competing newspapers in the same market to reduce costs and thus ensure that no newspaper could dominate the market by expelling the others. However, there is growing evidence that the passage of the law was intended less to protect the editorial diversity of community newspaper markets than to inflate the profit margins of national newspaper chains.

[3] By silently and informally adopting certain cartel behaviours, large newspaper chains could make artificially high profits while crowding out independent newspapers (or forcing them to sell their share to a channel). It exempted newspapers from certain provisions of cartel law. The authors argued that this would allow the survival of several daily newspapers in a given urban market, where circulation is declining. . . .

Sobre el Autor: Luis