Co-Opetitive Strategy Optimization for Online Video Platforms with Multi-Homing Subscribers and Advertisers

In the two-sided market for online streaming content, platform’s co-opetitive strategy has been wildly discussed, where platforms cooperate in sharing broadcasting right of content and meanwhile compete both subscribers advertisers. Although platform co-opetition practice can be easily captured, impacts cross-side network effects on pricing are contingent upon participation decision sides, including single-homing multi-homing. Therefore, we examine optimal duopoly using a Hotelling model to capture user behaviors investigate equilibriums decisions profits three scenarios: single-single, multi-single, multi-multi. The main findings are: (1) Advertisers choose multi-homing only when also multi-homing, cost is relatively low. (2) With advertisers, primary earns more profit than re-broadcasting one. (3) increases with rights cost. (4) Platforms should focus building strong Alternatively, they would better off contracting advertisers if