TITLE:
Study of Video Platform Pricing Strategies under Different Distribution
AUTHORS:
Fengyue An, Gang Liu
KEYWORDS:
Video Provider, Video Distribution, Media Platform Pricing Strategy, Video Quality
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.12 No.4,
April
20,
2022
ABSTRACT: This
paper develops a two-stage game model containing a monopolistic independent
video provider and two free video platforms, and explores the distribution choices of the video provider as well as the advertising pricing strategies of the two platforms in
different distribution choices. We found the following: (i) When video quality is high, the video
provider offers its video exclusively to one platform; when video quality is low, the video provider offers its video
non-exclusively to both platforms. (ii) In exclusive distribution, the platform
with the exclusive video has an advantage in advertising price, viewer share,
and advertiser share over its competitor, and this advantage increases with
video quality. (iii) In non-exclusive distribution, the advertising prices, viewer market
shares, and advertiser shares of the two platforms are equal and independent of
video quality.