Research On Video Website Platform Pricing Strategy Based On The Theory Of Two-sided Markets

As of 2015,Chinese video website industry has gone through 10 years,it has gone through the glorious period,and experienced twists and turns.Now it falls from more than a hundred to about ten.Recently researches on video website industry also emerge in an endless stream.However,the present study aimed at video website mainly from the media or advertising perspective,less considering from the perspective of Economics.Nowadays,the competition of video website is full of fierce,and the influence of user requirements and preferences becomes more and more important.With the expanding of the scale of video website market,the profitability did not improve correspondingly.Under the circumstance,we should pay more attention on the study of video website competition and solve the problem of earning more money in the existing condition.Video website platform is actually a typical two-sided market,which has the characteristics of the two-sided market structure,the external network,and the price is not neutral.Based on the previous studies,this paper analyzes the status and characteristics of video websites,establish the analysis model and obtains the optimal pricing strategy of the platform.Firstly,we analyze the current situation of the research on the two-sided market,and summarize the classification and characteristics of the video website industry.This part of work provides a theoretical basis for the research on the pricing strategy of the video website platform,and also determines the main research contents and the framework of the thesis.Secondly,we divide the users of video website into different categories,and we build the competitive model based on two kinds of charges,then we discuss the effect of the attitude of users on the price and profit of the platform.The result shows that the increase of ad-avoiders will increase the advertising fees and the profit of the platform.Then,this article divides the video site's advertisers into the high end advertisers and the low end advertisers.On the basis of considering the pricing model of the two cases of the single platform access and multi platform access,this paper analyzes the influence of the multi platform access to the pricing and profit.Finally,in this paper,the contents of the study were summarized,and the shortcomings of the paper and future research directions were discussed.