Channel Coordination on Exclusive vs. Non-Exclusive Content under Endogenous Consumer Homing

Malin Arve, Ole Kristian Dyskeland and Øystein Foros

No 2025/17, Discussion Papers from Norwegian School of Economics, Department of Business and Management Science

Abstract: We analyze competition between two digital platforms selling subscriptions for unlimited access to their content catalogs (e.g., streaming and TV broadcasting platforms). A content provider offers additional content to the platforms. The content provider chooses between offering a revenue sharing contract and a per-consumer wholesale pricing contract towards the platforms, thereby endogenously determining whether its content will be distributed non-exclusively (on both platforms) or exclusively (on one platform). Our model yields clear predictions: In markets with low initial exclusivity, the content provider and both platforms prefer per-consumer wholesale pricing to endogenously promote non-exclusive distribution. Platforms set subscription prices that lead to full consumer singlehoming. Conversely, in markets with high initial exclusivity, all market players prefer a revenue-sharing contract that induces exclusive distribution, with platforms setting prices that encourage some consumers to multihome.

Keywords: Multihoming; incremental pricing; content provision (search for similar items in EconPapers)
JEL-codes: L13 L14 L82 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2025-05-13
New Economics Papers: this item is included in nep-com, nep-cta, nep-ind, nep-mic and nep-reg
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