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Paper Number
1721
Paper Type
Complete
Abstract
Derivative content on short-form video platforms like TikTok holds great market potential. However, creators often struggle to access sufficient original source content. To address this issue, some platforms have recently partnered with content distributors to provide these creators with authorized access to a broader selection of originals. While this initiative can enhance creation and attract more consumers, it also has a drawback: mandatory links to the source content in derivatives can lead to user churn. Using a game-theoretic framework, we explore whether and when platforms will benefit from this innovative strategy. Our findings suggest that while this strategy can improve the quality of derivative content, it might cause a “robbing Peter to pay Paul” scenario where gains from market expansion due to improved quality of derivative content are offset by losses from consumer diversion through the embedded links. This study offers valuable insights for key stakeholders of short-form video platforms.
Recommended Citation
Zhang, Ying; Gu, Meilin; Chen, Pei-yu; and Liu, Dengpan, "Robbing Peter to Pay Paul? Economics of Platform-Led Access to Original Source Content" (2024). ICIS 2024 Proceedings. 15.
https://aisel.aisnet.org/icis2024/socmedia_digcollab/socmedia_digcollab/15
Robbing Peter to Pay Paul? Economics of Platform-Led Access to Original Source Content
Derivative content on short-form video platforms like TikTok holds great market potential. However, creators often struggle to access sufficient original source content. To address this issue, some platforms have recently partnered with content distributors to provide these creators with authorized access to a broader selection of originals. While this initiative can enhance creation and attract more consumers, it also has a drawback: mandatory links to the source content in derivatives can lead to user churn. Using a game-theoretic framework, we explore whether and when platforms will benefit from this innovative strategy. Our findings suggest that while this strategy can improve the quality of derivative content, it might cause a “robbing Peter to pay Paul” scenario where gains from market expansion due to improved quality of derivative content are offset by losses from consumer diversion through the embedded links. This study offers valuable insights for key stakeholders of short-form video platforms.
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