Online Video Platform Access And Pricing Strategy Based On Two-sided Market Theory

The two-sided market has already existed extensively in the real economic life.For instance,the traditional newspaper media industry and housing agency industry have typical two-sided market characteristics.With the rapid development of internet technology,human production and lifestyle have undergone tremendous changes.The forms of two-sided markets have also been diversified.Among them,online video websites are widely known as an important audio and video entertainment platform in daily life.The online video market is a typical two-sided market.Content providers and consumers are connected by intermediate companies on the platform because of the complementary needs.Online video companies charge revenue by providing upstream content providers or advertisers with traffic,and attract users by offering products or services to downstream consumers.This paper focuses on the decision-making game between platform companies,content providers,advertisers,and consumers in the online video market,using a combination of twosided market theory,classic game theory,behavioral economics,numerical simulation,and case analysis.The meaning behind the online video market operation has been explored meaningfully and a detailed study has been conducted on the following issues: Selected different platform access strategies,how will the pricing level and the advertising volume of the two-sided market change? How will different market factors affect the platform's access strategy choice? How do content providers choose the optimal platform access strategy based on market conditions? Under different market conditions,how will the choice of content provider platform access strategies and platform pricing strategies change?Based on the case of symmetrical competition,asymmetric competition,and cooperation,the paper analyzes the logic changes in platform pricing and advertising input,content provider access strategies,and consumer platform selection,and examines the impact and market factors for platform access strategy and platform pricing strategy choices.The study yields the following important management implications:(1)In the three scenarios,if the consumers have a higher proneness to advertising,compared to the "single-homing" strategy,the price under the "multi-homing" strategy will be lower and the amount of advertising will be more.(2)Under the competition situation,the total market demand under the "multi-homing" strategy will increase compared with the "single-homing" strategy;there are differences in the profit levels of individual platforms and content providers under symmetrical competition and asymmetric competition;in the case of symmetrical competition,the profit level of a single platform is lower,and in the case of asymmetric competition,the profit level of a single platform and content provider varies depending on the size of the platform.(3)Under the cooperation situation,the joining of a competitive platform will have a significant impact on the market structure compared with the "single-homing" strategy;"multihoming-platform competition" strategy and " multi-homing-platform alliance " strategy will increase the total market demand,but at the same time it will reduce the profitability of individual platforms;the "multi-homing-platform alliance" strategy will have higher profit levels for content providers,besides that,advertisers will have higher profits.(4)There are many factors affecting the development of platform access and pricing strategies in the online video market,among which the degree of consumer aversion,the cost of advertisers' placement,the differences between platforms,and the choice of platform for cooperation are key factors.(5)Under different market conditions,when consumers have a low advertising aversion coefficient and advertising prices are high,content providers should choose a “multi-homingplatform competition” strategy;otherwise,they should select “single-homing” strategy;When there are "single-homing" and "multi-homing-platform alliance" strategies available for selection,content providers should give priority to "multi-homing-platform alliance" strategy.The online video market is complex and changeable,and different decision makers should reasonably judge the market.The content provider should choose the optimal access strategy based on the actual market environment.Strengthening the understanding of consumers will help the company's strategy formulation;the platform should adjust the pricing strategy according to the market situation and the development stage of the company,discover the potential end-user needs and optimize their own differentiated services.The above research conclusions can provide reference for the operation of various participants in the online video market and provide some theoretical references for the policy regulation of the online video industry.