Abstract:

This paper analyzes the pricing and cooperation revenue sharing issues between platforms and content providers through developing a three-stage price game model based on the theory of two-sided markets. In the model,the past single pricing mechanism is improved by adding content pricing from the content providers and shared revenue rate of information fees,which matches more the practical situation of IPTV business model,especially under the background of the tri-networks integration in China. The study shows that the government’s regulation on monopoly platform is necessary,for the number of users’ and content providers’ accessing to platform,profits of content providers,surplus of consumers and total social welfare are all increased in equilibrium under government’s regulation.

Key words: video services, two-sided markets, game model