Revenue distribution in streaming platforms

27 Pages Posted: 12 Apr 2024

See all articles by Juan Carlos Gonçalves-Dosantos

Juan Carlos Gonçalves-Dosantos

Universidad Miguel Hernández de Elche

Ricardo Martinez

University of Granada

Joaquín Sánchez-Soriano

Universidad Miguel Hernández de Elche

Date Written: March 17, 2024

Abstract

The streaming industry has experienced exponential growth over the past decade. Streaming platforms provide subscribers with unlimited access to a diverse range of ser- vices, including movies, TV shows, and music, in exchange for a subscription fee. We take an axiomatic approach to the problem of how to share the overall revenue obtained from subscription sales among services or content producers. In doing so, we provide normative justifications for several distribution rules. We formulate several axioms that convey ethical and operational principles. In the first group, we consider properties that guarantee equal and impartial treatment of services and subscribers. In the second group, we introduce requirements designed to safeguard allocation schemes from inconvenient alterations, namely, changes in the units of measurement of inputs, subscription sharing, or group decomposition. Our analysis reveals that different combinations of these axioms define two classes of rules that strike a balance between three focal schemes, each representing distinct perspectives on the egalitarian and proportional principles. To illustrate the practical implications of our theoretical model, we explore its potential application by assessing how various types of content impact the success of some of the most well-known Twitch streamers.

Keywords: revenue distribution, proportional rule, uniform rule, axiom, streaming

Suggested Citation

Gonçalves-Dosantos, Juan Carlos and Martinez, Ricardo and Sánchez-Soriano, Joaquín, Revenue distribution in streaming platforms (March 17, 2024). Available at SSRN: https://ssrn.com/abstract=4762536 or http://dx.doi.org/10.2139/ssrn.4762536

Juan Carlos Gonçalves-Dosantos

Universidad Miguel Hernández de Elche ( email )

Avenida de la Universidad s/n
Elche, Alicante 03202
Spain

Ricardo Martinez (Contact Author)

University of Granada ( email )

C/Rector López Argueta S/N
Granada, Granada 18071
Spain

Joaquín Sánchez-Soriano

Universidad Miguel Hernández de Elche

Avenida de la Universidad s/n
Elche, Alicante 03202
Spain

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