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When to Share My First-party Content: the Role of Membership Bundles in Content Platforms

Author

Listed:
  • Tengfei Guo

    (Tianjin University
    Tianjin University)

  • Shiquan Zhong

    (Tianjin University
    Tianjin University)

  • Xuelian Wang

    (Hebei University of Technology)

  • Shoufeng Ma

    (Tianjin University
    Tianjin University)

Abstract

Content platforms suffer from declining subscriber growth. To address this issue, we examine an interesting strategy that competing platforms jointly launch a membership bundle, which provides consumers with simultaneous access to them at a reduced price. We investigate how the bundle approach interacts with first-party content production in shaping platforms’ pricing and content-sharing decisions. By solving a game-theoretical model, we illustrate that: first, competing platforms offer the bundle only when they are less differentiated. Second, in stark contrast with the consequence of keeping the content exclusive without the bundle, the platform is more likely to share its content with the membership bundle. Third, despite the exclusivity of first-party content, with the membership bundle, the rival platform may generate higher profit instead of always being harmed without the bundle. We enrich the understanding of how platform coopetition interacts with first-party content production and draw practical implications for platform owners.

Suggested Citation

  • Tengfei Guo & Shiquan Zhong & Xuelian Wang & Shoufeng Ma, 2025. "When to Share My First-party Content: the Role of Membership Bundles in Content Platforms," Information Systems Frontiers, Springer, vol. 27(1), pages 301-324, February.
    • Handle: RePEc:spr:infosf:v:27:y:2025:i:1:d:10.1007_s10796-023-10435-0
    DOI: 10.1007/s10796-023-10435-0
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