Research on the Revenue Management of Network Video Platform Based on Game Theory

To study how the network video platform can improve revenue and optimize the revenue structure, we construct an asymmetric competition model between free and paid platforms based on game theory, and the impact of the positive and negative cross-network externalities and program differentiation on platform's competition and revenue are analyzed. The results show that changes in the relative relationship of positive and negative cross-network externalities may lead to free platform exiting the consumer market or paid platform exiting the advertising market. Only when the ratio of positive and negative cross-network externalities is moderate, the free and paid platform coexist, and the greater the difference of program, the greater the possibility of coexistence. With the effect of the positive and negative cross-networks externalities, the multi-revenue structure of the payment mode is not always better than the single revenue structure of the free platform. In addition, the impact of the positive and negative cross-network externalities and program differentiation on the revenue of free and paid platforms are nonlinear. If the platform wants to achieve greater revenue through the adjustment of revenue structure, it should fully consider the relative relationship of positive and negative cross-network externalities and program differentiation, otherwise it may bring losses.