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| Pricing Strategy of a Two-Sided Market Online Video Platform |
| ZHANG Shichun，CHEN Jing |
| Shanghai International Studies University, Shanghai, China |
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Abstract Online video platforms that adopt a two-sided pricing model usually operate two types of businesses simultaneously, i.e., membership services and advertising services. In this study, we take an online video platform that adopt a two-sided pricing model as the research object. Considering the actual number of ads watched by the audience and the promotion intensity chosen by the advertisers, a game-theoretic model is formulated to investigate measures to coordinate the conflicts between two types of clients on the platform. By giving the analytical equation of the optimal two-sided pricing model, the study shows that if the platform wants to adopt a two-sided pricing model, it needs to maintain a high number of exclusive videos for members, and try to attract viewers to pay to become members through exclusive videos as much as possible. In addition, the study points out that the online video platform charging fees in two sides need to be biased when deciding pricing strategies, focusing on the market that can bring it more profits.
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Received: 05 February 2021
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