Cooperation and Competition: The Analysis of Strategy in Duopoly Online Video Websites
Science Journal of Business and Management
Volume 3, Issue 4, August 2015, Pages: 109-115
Received: Jun. 16, 2015;
Accepted: Jul. 9, 2015;
Published: Jul. 21, 2015
Views 4620 Downloads 89
Li Zhihong, School of Business Administration, South China University of Technology, Guangzhou, China
Cheng Yu, School of Business Administration, South China University of Technology, Guangzhou, China
Wu Yushan, School of Business Administration, South China University of Technology, Guangzhou, China
This paper studies the coopetition between two websites which are platforms to offer online video. We use two-sided market theory and game theory to analyze a duopoly market of online video websites. An online video service system is established, including online video websites, copyright owners of online video, advertisers and viewers. After discussing the negotiation of copyright trading, the effect for viewers to watch online video, the effect of advertising, we focus on the coopetition between the duopoly online video websites. We conclude that cooperation is the optimal strategy to promote the development of online video websites.
Cooperation and Competition: The Analysis of Strategy in Duopoly Online Video Websites, Science Journal of Business and Management.
Vol. 3, No. 4,
2015, pp. 109-115.
Rochet J C, Tirole J. Platform Competition in Two-sided Markets[J]. Journal of the European Economic Association, 2003, 1(4): 990-1029.
Caillaud B, Jullien B. Chicken & egg: Competition Among Intermediation Service Providers[J]. RAND Journal of Economics, 2003: 309-328.
Armstrong M. Competition in Two-sided markets[J]. RAND Journal of Economics, 2006, 37(3): 668-691.
Reisinger M. Platform Competition For Advertisers And Users In Media Markets[J]. International Journal of Industrial Organization, 2011, 30(2):243-252.
Anderson S P, Coate S. Market Provision Of Broadcasting: A Welfare Analysis[J]. The review of Economic Studies, 2005, 72(4): 947-972.
Peitz M, Valletti T M. Content and Advertising In The Media: Pay-tv Versus Free-to-air[J]. International Journal of Industrial Organization, 2008, 26(4): 949-965.
Prasad A, Mahajan V, Bronnenberg B. Advertising Versus Pay-Per-View In Electronic Media[J]. International Journal of Research in Marketing, 2003, 20(1): 13-30.
Choi J P. Broadcast Competition And Advertising With Free Entry: Subscription vs. Free-to-air[J]. Information Economics and Policy, 2006, 18(2): 181-196.
Kaiser U, Song M. Do Media Consumers Really Dislike Advertising? An Empirical Assessment Of The Role Of Advertising In Print Media Markets[J]. International Journal of Industrial Organization, 2009, 27(2): 292-301.
Kind H J, Nilssen T, Lars S⊘rgard. Competition for Viewers and Advertisers in a TV Oligopoly[J]. Journal of Media Economics, 2007, 20(3): 211-233.
Häckner J, Nyberg S. Advertising and Media Market Concentration[J]. Journal of Media Economics, 2008, 21(2): 79-96.
Crampes C, Haritchabalet C, Jullien B. Advertising, Competition and Entry in Media Industries[J]. The Journal of Industrial Economics, 2009, 57(1): 7-31.
Gabszewicz J J, Laussel D, Sonnac N. Programming and Advertising Competition in the Broadcasting industry[J]. Journal of Economics & Management Strategy, 2004, 13(4): 657-669.
Bengtsson M, Kock S. “Coopetition” in Business Network-to Cooperate and Compete Simultaneously[J]. Industrial marketing management, 2000, 29(5): 411-426.
Haaland J I, Kind H J. R&D Policies, Trade and Process Innovation[J]. Journal of International Economics, 2008, 74(1): 170-187.