319 / 2024-04-24 13:08:19

Competitive Platform Content Provision Strategy

Streaming,Content Provision,Platform

The streaming media market has witnessed substantial growth in recent years, fueled by the proliferation of digital platforms and the increasing adoption of high-speed internet globally. A crucial problem faced by digital platforms is whether to produce self-made content. This paper investigated the content provisioning strategies of competitive platforms and the pricing strategies of content providers using a stylized model. Our findings are shown as follows. Firstly, the increase in content prices may potentially undermine the profitability of content providers, particularly under the SS strategy (both platforms self-produce). Secondly, when consumers prefer non-self-produced content and the price of such content is lower, an asymmetric strategy will become the equilibrium strategy; otherwise, both self-produced strategies will become the equilibrium strategy. Thirdly, counterintuitively, an increase in consumer preference for non-self-produced content may lead to content providers reducing content prices and prompting platforms to increase the proportion of self-produced content.