Optimal Content-Sharing Strategy for Online Streaming Platforms

Abstract

Many subscription-based video-on-demand (SVOD) platforms are currently focusing on creating exclusive content to attract more subscribers. However, it is not clear that an exclusive-content strategy will eventually increase the platforms' profits and/or the number of the platforms' subscribers. This research models two competing platforms' choices between leasing and not leasing exclusive content investigating the impact of their choices on the SVOD market size and the competition results. We show the conditions under which the two platforms can increase their profits by sharing a certain amount of exclusive content.