Based On The Theory Of Bilateral Market Economics Analysis Of The Network Video Industry

China’s first video website appeared in2005, although the video website industry has7years of history, but the video website industry has experienced many twists and turns, the number of video website has been reduced from2000to the present more than10.Discussion about the video website has always been hot issue in the network economy, but most studies focus on the sociological category, very few articles carry on economic analysis.Based on the view of two-sided market theory, the paper raised and resolved the following problem:1. Is the market of video website showing the characteristics of a two-sided market? What’s about the power of network effect?2. Now, what problem our country’s video websites face in making profit?3. How to make profit for different types of video website?This paper first discusses the characteristics of two-sided market of our country video website and classify; Then based the classic model, combining of the reality of our country, from the content sharing and content integrated two kind video website sets’ aspect.structure a pricing model and analysis the way to make profit for video website; Last through econometric approach to the statistical data of our country video websites to point out the existence and the power of ross-group network externalities on two sided end users using the video website. This paper hopes through the above research to get some useful conclusions and provide some useful suggestions for the development of the video website.