Business modeling for online video services: download vs. streaming

  • Authors:
  • Yung-Ming Li;Lien-Fa Lin;Cheng-Yang Lai

  • Affiliations:
  • National Chiao Tung University, Taiwan;National Chiao Tung University, Taiwan;National Chiao Tung University, Taiwan

  • Venue:
  • Proceedings of the 13th International Conference on Electronic Commerce
  • Year:
  • 2011

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Abstract

Download and streaming are two major approaches for delivering online video/movie. In this paper, considering their differentiated characteristics, we analyze the pricing issues in a market where both types of content distribution are available. We examine the impact of various technological and market factors on developing the business strategies under the scenarios that these distribution channels are owned by the same provider or two independent firms. We further examine the loyalty fee development when the video content is independently owned by another content provider. Our results shows that while the quality of two types of video distribution has significant impact on determining the content loyalty fee in a competitive market, loyalty fee is only affected by the characteristic of steaming service.