Research On Dynamic Pricing Strategy Of Online Video Website Based On Bilateral Market Theory

Since 2004,China's online video platform has developed rapidly,and has formed an oligarch market headed by three major industry giants,Youku,Tencent and Aiqiyi.With the rapid expansion of the industry,the cost of operating the video platform is huge,and the revenue is mainly from advertising and a small number of users,and the problem of profitability is outstanding.How to properly price users and advertisers becomes even more important.This paper studies the pricing of users and advertisers of online video platforms.Considering that in practice,online video platforms have different sizes of users and advertisers at different stages of development,and the effectiveness of the two is different.This paper proposes a dynamic pricing model for online video media platforms,adding users and advertiser sizes as influence variables to the pricing model.Firstly,the genetic algorithm is used to solve the optimal dynamic pricing and corresponding profit of the platform to users and advertisers under the condition of profit maximization.Secondly,the relationship between network externality,the benchmark user scale,the benchmark advertiser size and the optimal dynamic pricing is analyzed.Moreover,this paper compares the effects of static pricing model and dynamic pricing model from the perspective of platform profit.Finally,this paper takes a video platform as a case to study its user pricing and advertising pricing model,and based on the dynamic pricing model to solve the optimal pricing of users and advertisers.The research finds that:(1)From the perspective of profit,the dynamic pricing model is better than the static pricing model,and the platform profit based on the former is greater than the latter.(2)The higher the direct externality of the platform users,the cross-externality of the users to the advertisers,the cross-externality of the advertisers to the users and the scale of the benchmark advertisers,the lower the optimal dynamics prices of the users,and the higher the optimal dynamics prices of the advertisers.(3)As the scale of the benchmark users increases,the optimal dynamic pricing of the platform to the users first increases and then decreases,while the optimal dynamic pricing for advertisers has been increasing.Finally,based on the empirical research of this paper,it is suggested that the management decision makers of the online video platform should use the dynamic pricing model to formulate the pricing policy from a comprehensive and development perspective.