American Journal of Industrial and Business Management

Volume 12, Issue 4 (April 2022)

ISSN Print: 2164-5167   ISSN Online: 2164-5175

Google-based Impact Factor: 2.08  Citations  

Study of Video Platform Pricing Strategies under Different Distribution

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DOI: 10.4236/ajibm.2022.124032    218 Downloads   871 Views  
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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.

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An, F. and Liu, G. (2022) Study of Video Platform Pricing Strategies under Different Distribution. American Journal of Industrial and Business Management, 12, 603-615. doi: 10.4236/ajibm.2022.124032.

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