Cross-group Network Externality、User Sorting And Platform Transformation

The popularization and application of Internet communication technology,especially mobile Internet technology associated with individuals,has greatly changed the way of production and consumption,brought subversive impact to many traditional industries,and changed user preference.This article summarizes the typical problems in two aspects of platform transformation by analyzing the characteristic facts in the changes of the Chinese media industry:(1)The application of new technology has brought the huge impact to many traditional platforms.This is not only reflected in the new platform's competition with the user scale of the old platform,but also the emergence of the new platform has led to the stratification of user groups and changed the cross-group network externality of the old platform.The focus of bilateral platform competition is on the side where user demand is more flexible.The change in user size on the side of cross-group network externality determines the key to the survival and development of the platform.Therefore,this article first focuses on the impact of new platform competition on the cross-group network externality of the old platform,and uses the Chinese newspaper market as an example to conduct an empirical test.(2)The advancement of digital information technology,the development of mobile terminals and the convenient and diversified payment methods have made platform-based enterprises technically capable of charging users.Based on the reality of the business model transition from "Pure Payment" and " Pure Advertising" to"Payment+Advertising”in the media industry in recent years,this article explores the differences in platform pricing mechanisms under the three business models.Aiming at the characteristics of bilateral platform cross-group network externality,asymmetric pricing,and considering the sensitivity of users to prices,a theoretical model for platform pricing decisions under the model of "Payment+Advertising"was constructed to explore the degree of user aversion to advertising and the impact of price sensitivity and the effect of advertisers' advertising effects on the pricing of the platform.Further examine the pricing mechanism of the platform to achieve internal balance.Throughout the text,this article draws the following conclusions:(1)After the new media platform enters the market as the new technology shock,users are sorted.This effect has led to a decrease in the externality of the negative cross-group network externality of the advertising side to the reader side in the newspaper market,and the positive cross-group network externality between the reader side to the advertising side is increasing.Further research shows that after the stratification of users on the old platform,the cross-group network externality of remaining users becomes more concentrated.(2)This paper measures the strength of cross-group network externality in the Chinese newspaper market.In the development period,the cross-group network externality of the reader side to the advertiser side were 7 and the cross-group network externality of the advertiser side to the reader side were-0.938;in the middle period,they were 7.063 and-0.417;in the mature period,they were 8.399 and-0.685.(3)Under the model of "Payment+advertising",the platform's pricing on the audience side is related to the degree of aversion to the advertisement and the sensitivity of the price to the "U" relationship,which is positively related to the effectiveness of advertising;on the advertiser side,there is a negative correlation with the degree of aversion to advertising.It is directly related to the sensitivity of the audience to the price and the effectiveness of advertising.(4)Compared with the other two models,under the model of "Payment+advertising",platform revenue is expanded into two ways,which not only brings internal balance problems,but also gives the platform a regulated pricing mechanism,which enhances platform pricing ability.This pricing mechanism is different from the classic asymmetric pricing theory of the bilateral market.The above research conclusions affirm the importance of cross-group network externality in platform competition.If traditional platforms are not to be eliminated under the external impact of new technology,they must be transformed in a timely manner based on the characteristics of the group of retaining users for the niche professional platform.Secondly,the model of "Payment+Advertising" brings a better pricing mechanism,and the media platform can build a price and advertising quantity structure based on user characteristics.