56 / 2024-04-18 00:03:45

Operational strategy for long video platform facing short video platform: Co-influence of attraction and diversion

long and short video platform；,copyright authorization;,revenue model

With the rapid growth of the online video industry, the market pattern of the video industry has undergone major changes, making the competition between the long and short video platforms preliminary. The operation strategy choice of home-made dramas on long video platform has attracted great attention from academia and the industry. This paper considers that a long video platform acts as both a video content producer and a video service provider, and also considers the co-influence of a short video platform on the attraction and diversion of long video platform consumers. We develop a theoretic model consisting of a long video platform and a short video platform and study the copyright authorization strategy and revenue model choice of videos after authorization on a long video platform.

We find that the attraction effect is not always "effective". In some cases, the attraction effect will be completely offset because of the "price increase", which turns to an incremental erosion of market demand of the long video platform. Long video platforms can strength attraction effect and reduce the negative impact of diversion effect by adopting different revenue models. Regardless of the revenue model, if the attraction effect is greater than the substitution effect, no matter how the licensing fee changes, even if it is zero, long video platforms still choose to authorize. Conversely, long video platforms will never authorize if the licensing fee is small. In the member model, even though the licensing fee is moderate, the long video platform is unwilling to authorize if the member experience privilege is large. we also learn that copyright authorization does influence long video platforms' revenue model choices, and that the revenue model choices of long video platforms are affected by unit advertising price and attraction effect. In additional, Copyright authorization is not always beneficial to the total value of long videos and the market size of long video platforms, but they can gain more revenue by adjusting the advertising volume or member price.