• Title/Summary/Keyword: Pricing of Content

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A Study on Calculating the Fee Range of Broadcasting Contents : Focus on IPTV

  • Shin, Minsoo;Kil, Jinho;Bae, Seonghoon
    • Journal of Information Technology Applications and Management
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    • v.22 no.2
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    • pp.43-70
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    • 2015
  • Concerns have been growing about whether domestic internet protocol television (IPTV) can establish a solid foothold in the pay TV market, largely because of the lack of IPTV-only content and service differentiation. It has been difficult for IPTV providers to attract valuable PPs (program providers) to strengthen their positions, and IPTV providers have invested much money into procuring content. To survive this difficult situation, IPTV providers need to reappraise their profit sharing methods and content distribution structure to facilitate the expansion of their subscriber base. This can be done by attracting valuable PPs to IPTV providers and securing extra revenue by distributing more content for their PP partners. The IPTV industry has a different structure and value chain from the digital cable industry. Moreover, profit sharing schemes among participants in the IPTV industry are complicated. Thus it is essential to analyze the criteria for profit sharing, the selection of attributes in profit sharing, and their cause-effect relationship in developing fair pricing for broadcast content in the IPTV industry. This study introduces the attributes that need to be considered for the pricing of content and profit sharing among IPTV providers and PPs. In addition, this study uses system dynamics to analyze the relationship among those attributes along with additional associated factors for the pricing of content.

Developing Price Response Functions for Internet Content Services (인터넷 콘텐츠 서비스에 있어서 가격반응함수의 추정에 관한 연구)

  • Lee, Jung-Woo;Lee, Se-Yoon
    • The Journal of Society for e-Business Studies
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    • v.14 no.1
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    • pp.93-120
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    • 2009
  • Content services on the Internet is getting attention as a new business model, selling digital content in real-time on the web. However, most of these content-based business is based on advertisement model rather than direct-payment-based business model. One of the difficulty in setting up charge-based content service is that the pricing paradigm of digital content is different from traditional pricing of products or services. The objective of this study is to empirically derive the feasible price response functions for these content services. Based on conjoint analysis of popular attributes of digital content, several price response function models were fitted against the conjoint data, using online movie viewers' preferences for different attributes of the service. Fitted function models were linear, multiplicative, exponential, attraction, and Gutenberg models. attraction model was found to be well-fit with the data for several specific combinations of attributes. Implications for pricing strategy is discussed at the end.

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An Optimal Incentive-Compatible Pricing for Congestible Networks (혼잡이 있는 네트워크를 위한 동기 유발 가격)

  • Kim, Yong-Jae
    • Asia pacific journal of information systems
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    • v.7 no.3
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    • pp.109-124
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    • 1997
  • Pricing information services, where congestion can threaten the efficient operation of information systems, has been studied in economics and information systems literature, Recent explosion of the Internet ana proliferation of multimedia content over the Internet have rekindled the research interest in designing pricing schedules for differentiated information services, In order for the information system to effectively serve users having heterogeneous needs, pricing rules for discriminated services should be considered. At the same time, when individual users' interest does not align with that of the organization that individual users belong to, organization-wide pricing policy should be devised to improve the value of the services rendered by the system. This paper, using a priority queuing model, addresses the need for such on incentive-compatible pricing for different information services.

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Study on the Market-Entering Pricing of New Telecommunication Service in firm Level's Decision Model and Its Empirical Case (신규통신서비스 시장진입가격 설정시 기업의사결정 과정 및 활용방안에 관한 연구)

  • Jeon Hyo-ri;Shin Yong-hee;Choi Mun-kee
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.30 no.8B
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    • pp.562-568
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    • 2005
  • The content of this paper is concerned with the pricing decision model when the new telecommunication service enter into market. The pricing decision model of firm level is based on the problems of the previous service pricing model that are abstracted from the literature survey. We suggest a new pricing model and prove the model's fitness using the way of empirical simulation study. We empirically apply the proposed model to obtain the price level of such a new service as the convergence service between mobile communication service and broadcasting service. finally, we prove that the proposed model is successful because we get the new . service price based on the pricing decision model suggested in this paper.

An Analysis of the Comparative Importance of Heuristic Attributes Affecting Users' Voluntary Payment in Online News Content (자발적 독자구독료에 영향을 미치는 온라인 뉴스 콘텐츠의 휴리스틱 속성 간 상대적 중요도 분석)

  • Lee, Hyoung-Joo;Chung, Nuree;Yang, Sung-Byung
    • Journal of Information Technology Services
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    • v.16 no.4
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    • pp.177-195
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    • 2017
  • Traditionally, news was consumed only through printed newspapers and broadcasting media, such as radio and television. However, the Internet has enabled people to consume news content online. Since most of online news content has been provided for free, it is not easy for news providers to charge the fixed subscription fee for online news content. Therefore, as an alternative strategy, some online news providers have tried to adopt the Pay-What-You-Want (PWYW) pricing model, which allows users (readers) to pay as much as they want after consuming news content. As this pricing model shows some possibility to grow and replace the unsuccessful monetization strategy of online news content, we therefore examined the comparative importance of seven heuristic attributes (i.e., article evaluation, article share, article comment, article information design, article length, writer SNS, and writer information) affecting readers' voluntary payment behavior through a conjoint analysis with 379 news articles collected from online news Website (i.e., Ohmynews.com) where the PWYW model has been working successfully. This study found that article share and article length are the most important factors which affect online news content users' voluntary payment. Finally, two major and eight minor propositions are suggested based on the findings of the study. This study would suggest guidelines for how to create online news content which induces much more voluntary payment.

Analysis of Price Charge Strategies in Online Content Markets (온라인 컨텐츠 시장에서의 유료화 전략에 관한 분석)

  • Cheon, Se-Hak
    • 한국산학경영학회:학술대회논문집
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    • 2004.11a
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    • pp.4-22
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    • 2004
  • The Internet provides a new distribution channel of digital contents for conventional media firms such as newspaper, magazine and encyclopedia publishers and broadcasting companies with very low marginal production and distribution cost. In comparison to traditional offline channel, there have been various revenue models in online content markets such as advertising model, subscription model, affiliation fee model, etc. In the earlier of the Internet era, most of online content firms provided their services free in order to boost offline revenue or they depend on advertising revenue sources in lieu of attaining revenue from their contents. However, as many online content firms are confronted with many difficulties in attaining revenues from online advertising model, they began to charge their contents. This paper shows why they charge their contents and explores entry conditions when conventional firms enter online content markets. And also this paper discusses managerial implications related to pricing strategies in online content markets.

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Analysis of Pricing Strategies and Business Models in Online Content Market (온라인 콘텐츠 시장에서의 가격전략과 비즈니스 모델에 관한 분석)

  • Chun Se-Hak;Kim Jae-Cheol
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.3
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    • pp.53-62
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    • 2006
  • Many information providers in the electronic market struggle to attain revenue from their information goods including contents or other services and they tend to charge for their contents or services since they are confronted with difficulties in attaining revenue from online advertising. This study examines why they begin to charge for their contents or services and explores Pricing strategies for their contents. Also, this paper explores business strategies when conventional offline contents firms enter the online contents market and draws some implications for the condition of entry of offline contents providers into the online market.

Paid Peering: Pricing and Adoption Incentives

  • Courcoubetis, Costas;Sdrolias, Kostas;Weber, Richard
    • Journal of Communications and Networks
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    • v.18 no.6
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    • pp.975-988
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    • 2016
  • Large access providers (ISPs) are seeking for new types of business agreements and pricing models to manage network costs and monetize better the provision of last-mile services. A typical paradigm of such new pricing norms is the proliferation of paid peering deals between ISPs and content providers (CPs), while on top of this, some ISPs are already experimenting with usage-based tariffs, usually through data-plans, instead of the typical fixed-based charging. In this work we define as common platform, the infrastructure in which a single ISP transacts with several CPs through peering agreements. In this context, we examine whether, and under which market conditions, the profitability of the involved stakeholders improves when the establishment of this platform is accompanied by a monetary compensation from the CPs to the ISP (paid peering), v.s. a scenario where their deal is a typical settlement-free one. In both cases, we assume that the ISP implements a usage-based access pricing scheme, implying that end-users will pay more for higher transaction rates with the CPs. Our framework captures some of the most important details of the current market, such as the various business models adopted by the CPs, the end-users' evaluation towards the ISP's and CPs' level of investments and the traffic rates per transaction for the offered services. By analysing the equilibrium derived by a leader-follower game, it turns out (among other practical takeaways) that whether or not the profitability of a CP improves, it highly depends on whether its business model is to sell content, or if it obtains its revenue from advertisements. Finally, we extract that consumer surplus is considerably higher under paid peering, which in turn implies improved levels of social welfare.

Platform Pricing As a Negotiation Process

  • Kim, Hang-Ki;Lee, Dong-Won
    • 한국IT서비스학회:학술대회논문집
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    • 2008.11a
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    • pp.175-178
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    • 2008
  • With rapid advancement of IT and Internet technologies, online market is surely becoming a stage of the competition among various forms of platform providers. This study show the significance of the negotiation process in the platform pricing strategy and observe several external/internal factors that might affect the negotiation power of the identities surrounding the platform. Major theories used in this study are the resource-based-view and network theory. Resources resulting in a negotiation power of the content providers and platform providers turn out to be widely scattered in their business areas - from product characteristics to the size of the content provider. End-user (or buyer) group which cannot make a strategic move for the organized development and use of resources is taking advantage of network externalities to support its negotiation power.

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Conjoint Analysis of Online Content : A Case of Video on Demand Service (온라인 콘텐츠의 컨조인트 분석 : Video on Demand 서비스 사례를 중심으로)

  • Lee, Jung-Woo;Lee, Moon-Kyu;Choi, Hong-Joon
    • The Journal of Society for e-Business Studies
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    • v.12 no.4
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    • pp.85-98
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    • 2007
  • This study uses conjoint analysis technique to calculate relative importance of each attribute of a specific online content: video-on-demand (VoD) services of TV soap operas. A series of interviews were conducted to identify and derive critical attributes for VoD services. Conjoint instrument was constructed using attributes identified and administered among actual viewers. Price, genre, additional service, and actors were found to be the most highly valued attributes of the VoD services. While price was the most valued attribute for female viewers, it was genre for male viewers. The result suggests that these attribute differentiation would lead to more profitable pricing scheme, and development of additional services may be critical for online content business' success.

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