Co-Opetitive Strategy Optimization for Online Video Platforms with Multi-Homing Subscribers and Advertisers

Autor: Jing Li, Shuying Gong, Xing Li
Jazyk: angličtina
Rok vydání: 2023
Předmět:
Zdroj: Journal of Theoretical and Applied Electronic Commerce Research, Vol 18, Iss 1, Pp 744-764 (2023)
Druh dokumentu: article
ISSN: 0718-1876
DOI: 10.3390/jtaer18010038
Popis: In the two-sided market for online streaming content, the platform’s co-opetitive strategy has been wildly discussed, where the platforms cooperate in sharing the broadcasting right of content and meanwhile compete for both subscribers and advertisers. Although platform co-opetition in practice can be easily captured, the impacts of cross-side network effects on pricing strategy are contingent upon the participation decision of both sides, including single-homing and multi-homing. Therefore, we examine the optimal co-opetitive strategy of duopoly platforms using a Hotelling model to capture user behaviors and investigate the equilibriums of pricing decisions and profits in three scenarios: single-single, multi-single, and multi-multi. The main findings are: (1) Advertisers choose multi-homing only when subscribers are also multi-homing, and the broadcasting cost is relatively low. (2) With single-homing advertisers, the primary broadcasting platform earns more profit than the re-broadcasting one. (3) With multi-homing advertisers, the primary broadcasting platform’s profit increases with the broadcasting rights cost. (4) Platforms should focus on building strong cross-side network effects with multi-homing advertisers. Alternatively, they would be better off contracting with single-homing advertisers if the effects are relatively low.
Databáze: Directory of Open Access Journals
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