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Chinese Journal of Management Science ›› 2020, Vol. 28 ›› Issue (2): 145-152.doi: 10.16381/j.cnki.issn1003-207x.2020.02.014

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Movie Dual Channel Pricing Strategies Analysis with Release Window

MA Jing-pei1, LI Wen-li1, GENG Shi-dao2, LI Tian-shi1   

  1. 1. Institute of Systems Engineering, Dalian University of Technology, Dalian 116024, China;
    2. School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China
  • Received:2018-04-03 Revised:2018-10-17 Online:2020-02-20 Published:2020-03-03

Abstract: There are two online channel strategies of movie studio:pay on demand strategy and free strategy. By introducing release window, according to the optimization method and game theory, users' utility function in traditional and online channel are defined respectively to study the movie studio's optimal prices, demands and the profits, the model takes the existing dual channel distribution strategy of the movie firm as a reference. It is found that:when the movie release window is short, the intrinsic value discount coefficient of the online movie version is high, and the online channel viewing cost is low, the movie firm adopts the dual channel strategy of online channel on demand payment; instead, adopts the dual channel strategy of online channel free for movie. When the profit sharing ratio of a movie studio in the traditional channel is very large, it only adopts the traditional channel strategy; when the ad revenue rate of online channel is very large, the movie studio only adopts the online channel strategy.

Key words: release window, dual channel strategy, online channel, pricing strategy

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