Research on optimal free size of online content under hybrid business model

  • Huayu Cui, Yameng Sun, Wei Li
  • Published 2016 in
    2016 13th International Computer Conference on…

Abstract

The hybrid business model is that the online content operators from the choice of free consumers to receive advertising revenue, from the paid consumers to receive subscription revenue. With this business model, the one of main decision-making problem is how to determine the size of free online content to maximize profits. In this paper, the random behavior model is built according to the different of consumer perceived quality and is based on this to develop the optimization of free size. In the end, a numerical analysis is employed, and the results show that: (1) in the overestimate context, operators take the smaller free size strategy; (2) in the underestimate context, the operators need to take larger free high quantity strategy to attract customers.

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Cite this paper

@article{Cui2016ResearchOO, title={Research on optimal free size of online content under hybrid business model}, author={Huayu Cui and Yameng Sun and Wei Li}, journal={2016 13th International Computer Conference on Wavelet Active Media Technology and Information Processing (ICCWAMTIP)}, year={2016}, pages={432-435} }