The Research Of Media Content Pricing And Outsourcing Based On The Perspective Of Multi-sided Markets Theory

In the time of “King as content”, media content providers play an irreplaceable role inmedia industry, as media industry division refinement, content outsourcing is a common thing,and government impels its development. This paper build a media multi-sided markets model tointroduce content provider based on the two-sided market model to study the pricing behavior ofmedia in both cases of content self-producing&content outsourcing, especially pricing behaviorof media, and we analyzes the factors which affect to the outsourcing decisions. In the study ofgovernment regulation, we testify that there is a “market failure” in media market, then weanalyze the government regulation behavior. The main conclusions are concluded as follows:Firstly, we build a media multi-sided markets model to introduce content provider based onthe two-sided market model to study the pricing behavior of media in both cases of contentself-producing&content outsourcing. The study finds that the media which is equipped with ahigher “switching costs” has more able to drive down the price of media content.Secondly, based on the media “multi-sided markets” model, we analyze the profit of mediain both cases of media content produce outsourcing and homemade. The study finds thatcharacteristics of consumers affect the profits of the media, and then change the behavior of themedia, it results that the media prefer to promote “content” rather than “advertising”.Thirdly, we discuss the factors which impact to media outsourcing behavior including theindirect network externalities, the differentiation of lateral extent, the characteristics ofconsumers and the proportion of ad-averse consumers. Moreover, the differentiation has a“two-way” impact to outsourcing behavior of media.Finally, the welfare model of media content outsourcing proves that “market failure” is existin the media market. We support the “appropriate regulation” by government. However, weoppose some outsourcing incentives policy such as “quota system”. We advocate the policy of“discretion” based on market competition.