Dynamic generation and attribution of revenues in a video platform

Abstract

The consumption of online videos on the Internet grows every year, making it a market that increasingly generates a greater volume of income. This paper deals with a problem of great interest in this context: the allocation of the generated revenues in a video website between the website and the video creators. For this, we consider a dynamic model of the revenues generation. We will consider that revenue can come from two sources: through the pay-per-view system and through the insertion of advertisements in the videos. Then to study how to divide the revenues in a reasonable and fair way between the two parties, we consider a dynamic cooperative game that reflects the importance of each part in generating revenue. From this game, we determine how its Shapley value is and introduce other allocation rules derived from it. We provide a structure of algorithm to calculate the Shapley value and its derived rules. We show that the computational complexity of the algorithms is polynomial. Finally, we provide some illustrative examples and simulations to illustrate how the proposed allocation rules perform.