Pricing Study On Digital TV Network Based On Two-sided Markets Theory

The core of the two-sided market theory is pricing theory. Theory of two-sided markets price mainly reflects in the asymmetric structure of pricing users, but this kind of structure does not belong to an unfair competition. According to basic concepts and criteria for the classification of two-sided markets, Digital TV market is also a two-sided market. The paper analyzes two-sided market characteristics of Digital TV network based on the general theory of two-sided markets and builds the chain of the Digital TV industry, which derived conclusions that pricing strategy is the core of building Digital television network platform. Then, the paper discussed the pricing comparison of Digital TV network between China and some foreign countries, such as the comparison of Digital TV network operators setting pricing to Channel operators and Digital TV subscribers between China and some foreign countries. Learning some advanced concepts from some foreign Digital TV network operators, the paper pointed out the problems existing in the pricing of Chinese Digital TV network. Next, from theory to practice, the paper specifically analyzed China’s Digital TV fee pricing situation and existing problems, presenting an effective pricing strategy of China Digital TV Network to resolve substantive problems. As everyone knows, the pricing of China Digital TV network is still in relatively low-level. By analyzing the factors that constrain pricing of Digital TV, coming up with the idea of innovative and effective strategy, such as the package form of mobile communications and Digital TV fee pricing strategy pattern under the triple play, which can enable us to solve problems of pricing in China’s Digital TV network. Finally, the paper presents measures of ensuring the achievement of pricing in China’s Digital TV network.? Platforms in digital television network construction should be based on different concepts, different measures. Based on this analysis, these measures are mainly in three aspects: optimization of trading environment, highlighting the competitive differentiation, strengthening cooperation and alliances.