Research On Price Strategy Of Social Media Platform Based On The Two-Sided Market Theory

wave in recent years, attracting the attention and interest of many scholars at home and abroad. As the main application of WEB2.0era, social media platform has its own unique characteristics and manifestations.There are users, advertisers and application developers participating in social media platforms. In the strict, it is a multilateral market. Based on the two-sided market theory, the social media platform can be divided into two separate two-sided markets, media platform and software platform, and based on two-sided markets for modeling and analysis of platform pricing.In the core section, we study the monopoly, oligopoly pricing competition under two different conditions of social media platforms. Based on the modeling results, the main factors affecting pricing platform are quantitatively analyzed and discussed. Conclusions show that the state of monopoly and competition, platform pricing is mainly influenced by the participants, direct network externalities between users, cross-network externalities, the platform provides services cost factors. In addition, under competitive condition, the platform pricing also influenced by the degree of differentiation, user-related sensitivity to pricing.In addition, this paper analyzes Sina Weibo and discusses their profit model and pricing strategy, and gives the microblogging platform development strategy of differentiation. In my opinion, raising the level of the platform difference is the key to enhance the platform participants bargaining power against the other parties. Thus the social media platform operators should not only pay attention to the pricing structure and pricing level, but also to proceed platform differences from the fundamental concerns, then getting pricing advantage by creating a differentiated platform.