PRICING STRATEGIES OF ONLINE MUSIC PLATFORMS IN TWO-SIDED MARKET

As the online music industry expands, sale models for digital music are becoming increasingly diverse. Online sales of music products can be regarded as typical two-sided markets, where a well-designed pricing model can help online music platforms attract more users and achieve platform growth. The research reveals the influencing mechanisms of advertising density, advertising return rate, song utility value, and user scale on platform profit and pricing strategies under a hybrid model. It also indicates that the ownership model is suitable for scenarios with high advertising density and low song utility value, while the hybrid model is ideal for conditions with a low advertising return rate and low song utility value. When the song utility value is high, the subscription model is recommended.