Research on Competition and Cooperation Strategies of Internet Service Providers and Online Video Platforms
This paper establishes a game-theoretic model to characterize the relationships between internet service providers(ISPs)and online video platforms.It aims to address the following questions:how should the two parties rationally set the price of video content services?How will market factors such as negative network externalities and network service price impact the profits and consumer surplus of both platforms?By analyzing the optimal solutions,we discuss the pricing strategies for ISPs and online video platforms,exploring the impact of various market factors on optimal prices,market shares,profits,and consumer surplus.A series of conclusions are summarized in this paper to provide management insights for the operation of both enterprises.In addition,we also provide theoretical support for government's governance from the perspective of consumer surplus.The key findings of this research include:(1)The optimal prices for content services of the ISP and online video platform will increase as the negative network externality effect or product differentiation becomes stronger.(2)As the unit value of bandwidth to consumers increases,consumers will switch from the ISP's content service to the online video platform,with the profits gained by the ISP first declining and then rising,and that of the online video platform improving.(3)The increase in the unit price for network service provided by the ISP to the online video platform affects the market share of the two enterprises in the content service market,leading to a continuous increase in the ISP's profit and a gradual decline in the online video platform's profit.(4)Our finding reveals how consumer surplus is interactively influenced by the decisions of both the ISP and online video platform,increasing with the increase in the value of unit bandwidth to consumers and decreasing with the increase in negative network externalities on the online video platform.This study also provides several management insights for the business practices of ISPs and online video platforms,including:(1)As the unit value of bandwidth to consumers increases,ISPs should reduce the price for video services,while online video platforms should raise the price of their services to achieve higher profits.(2)The intensity of negative network externalities in the video service market affects the optimal pricing strategies for both enterprises.The stronger the negative network externalities on online video platforms,the higher the prices of video services should be for both ISPs and online video platforms.(3)Online video platforms need to take proactive measures to reduce bandwidth costs in video service operations,as the cost per unit of bandwidth significantly impacts their profitability.(4)In the online video service market,both ISPs and online video platforms should pay attention to the differentiation level of their products.By implementing reasonable and effective differentiation strategies and adopting flexible pricing strategies based on the added value of products and market demand,enterprises can enhance their profits.Additionally,the paper provides theoretical support for government's governance of online video service market from the perspective of consumer surplus.It is revealed that the ISPs and online video platforms may engage in collusions that harm consumer surplus in pursuit of their own interests,and the government should strengthen regulation for such phenomena.
internet service providersonline video platformsinternet servicepricing strategy
万方数据
维普
