The Online Video Platform Access Strategy of Content Provider Based on Two-sided Markets Theory

Abstract

Abstract:

Considering the online video industry with typical two-sided market characteristics, we firstly construct the behavioral game model between the market agents (platforms, content providers and advertisers). Secondly, the paper analyzes the platform pricing and advertisers’ advertising input when the content providers choose “single-homing”, “platform competition” and “platform alliance” access strategy. Finally, we propose the applicable conditions of different platform access strategy. The results show that if consumers in the market have a higher advertising aversion, then prices for online videos will be low under the “platform competition” and “platform alliance” access strategy, while advertisers’ advertising input will be low under “single-homing” strategy. Under the “multi-homing” strategy, the total market demand will increase, but the profitability of a single platform will decrease. Content providers who choose the optimal platform access strategy must simultaneously take the effect of the consumer advertising aversion coefficient and the advertising price into consideration. These research conclusions can be used as reference for market agents in the online video industry to make their operation decisions.

Key words: two-sided markets, online video industry, content provider, platform access strategy

Li Zhangyan, Pu Xujin, Lin Xijie. The Online Video Platform Access Strategy of Content Provider Based on Two-sided Markets Theory[J]. , 2020, 32(5): 180-191.

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