# Will pay-per-view in the advanced charging model recover the business losses for online video companies in China?

## TL;DR

This paper examines if pay-per-view pricing can help Chinese online video platforms recover business losses and improve profits.

## Contribution

The study applies second-degree price discrimination theory to analyze pricing strategies of Chinese video platforms.

## Key findings

- Chinese platforms like iQiyi and Tencent Video are refining pricing strategies to optimize profits.
- Comparisons with international platforms reveal both similarities and differences in pricing approaches.
- Theoretical insights are combined with case studies to offer growth strategies for Chinese platforms.

## Abstract

The evolution of Internet technology is closely mirrored by the innovative business and profit models emerging within the platform economy. Integrating this economic framework, online video platforms are dynamically refining their pricing strategies to optimize profit margins. This paper, anchored in the theoretical construct of second-degree price discrimination, selects the Chinese online video platforms iQiyi and Tencent Video for in-depth case studies. It charts the progression of its pricing strategies and juxtaposes these with those of prominent international online video sites to highlight both congruities and divergences. The synthesis of theoretical models with real-world case studies culminates in strategic recommendations to foster the growth of Chinese online video platforms in the global Internet arena.