Research On Pricing Strategy Of Digital Products Based On Subscription Service

In recent years,with the improvement of Internet information technology,the scale of digital product market is expanding.The pricing mechanism of digital products affects customers’ purchasing behavior to some extent,determines the profit level and the competitiveness of enterprises,and further influences the development and growth of the digital product market scale.At the same time,pirated digital products have become another choice for many consumers to satisfy their needs due to their low prices and easy access,resulting in the increasingly serious phenomenon of piracy of digital products in the market,which to a certain extent erodes platform profits.Therefore,reasonable pricing of digital products according to the market environment is of far-reaching significance to the survival and development of enterprises.In view of the fact that some products in the digital product market are priced separately for sale,and some products will join the subscription service when they are priced separately for sale.Two mathematical decision models are constructed respectively based on the consumer utility theory and considering individual rational constraint and incentive compatible constraint,this paper respectively studies whether the digital product sales platform is suitable to join the subscription service and the corresponding pricing strategy for a new digital product when it is priced separately for sale in the environment where there is no piracy or piracy.The study found that: First,in the environment where pirated products do not exist in the market,when the average number of digital products used by consumers in a subscription cycle and the subscription price are both at a medium or high level,adding the subscription service can yield higher revenue;when the average number of digital products used by consumers in a subscription cycle is low,the sales platform should choose a separate pricing model,i.e.,not include the subscription service;Second,In an environment where piracy exists in the market,pirated digital products will occupy part of profits of the platform and leave an impact on the strategy selection of the platform.Specifically,when the cost of pirated products in the market is low level,and the subscription cost in a subscription model is allocated to the new digital product at a moderate model;or the cost of searching for pirated products in the market is medium and the average number of digital products used by consumers in a subscription cycle is low,in addition to the subscription price at a medium level,new products can be more profitable when priced separately while also incorporating a subscription service;in other cases,the sales platform should choose a separate pricing model.The findings of this study will provide a theoretical basis for scientific pricing in the digital product market.