Pricing Strategies for Online Video Platforms

As network technology advances and online video platforms become increasingly popular, subscription-based pricing has become the dominant pricing model for such platforms. This article explores the dynamic investment and pricing strategies for online video platforms utilizing the subscription-based pricing model. An optimal control model is developed, taking into account the perishability of platform resources. Through the application of the maximum principle to solve the optimal control model, the most effective dynamic investment and pricing strategies are obtained. It is observed that during the final stage of platform development, investment rapidly decreases to zero, and the platform scales down accordingly.