Competitive Strategies for Online Music Platforms
Date Issued
2015
Date
2015
Author(s)
Lai, Guan-Hong
Abstract
With rapid advances of Internet and well-developed compression technologies, the channel strategies of music companies have changed dramatically from selling traditional CDs to providing online music streaming services. Most previous channel management models focus on the strategies formulated by the manufactures; however, streaming providers play a more important role in implementing competitive strategies in online music streaming industry Therefore, in this thesis, we propose four competitive models to study how the strategies of online streaming music platforms are affected by the amount of non-exclusive content, amount of exclusive content and the differentiated utility provided by a media provider. We find some results different from previous studies, and provide some insights for streaming and media providers from different perspectives. Finally, we consider the interaction between streaming providers and media providers, and find the most profitable regions for each strategy. Our research result can help streaming and media providers adopt the appropriate strategy under different market circumstances, and provide some managerial implications and valuable insights for online music streaming industry.
Subjects
streaming platform
competitive model
channel strategy
exclusive content
Type
thesis
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