Abstract
This paper presents an optimal Pay-Per-View (PPV) price decision model for maximizing an Internet based Video-On-Demand (VOD) service provider’s revenues, taking into account the service provider’s service quality and consumers’ willingness to pay. The model considers multi-class VOD services with differentiated qualities and determines the optimal price for each class through simulations. The simulation results show that as long as all the multi-class services have non-zero demands, the differential pricing system provides more revenues than the uniform pricing system that prevails in the current VOD market. To test the robustness of the model, simulations were performed with gradually increasing customer demands or system workloads. The simulation results show that even with substantial customer demands or system workloads, self-adjustment mechanism of the model works and the system reaches a stable status in equilibrium. This paper also presents a numerical example of guaranteeing Quality-of-Service (QoS) through pricing strategies as a short-term measure.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
J.M. Aein, A multi-user-class, blocked-calls-cleared, demand access model, IEEE Transactions on Communications 26(3) (1978) 378–385.
M. Carter and R. Maddock, Rational Expectations (Macmillan, London, 1984).
K. Chow and M. Liou, Simple call admission control and buffer management scheme for mulitclass video-on- demand service, IEEE International Symposium on Circuits and Systems 1 (1995) 466–469.
A. Elmaghraby, A. Kumar, M. Kantardzic and M. Mostafa, Bandwidth allocation in a dynamic environment using a variable pricing policy, in: Proceedings of the 7th International Symposium on Computers and Communications (ISCC 02) (2000) pp. 1–6.
B. Hamidzadeh and T.J. To, Prioritized admission strategies to improve user-perceived performance in interactive VOD servers, Multimedia Tools and Applications 13 (2001) 5–34.
L. Kleinrock, Queueing Systems Vol. 1: Theory (Wiley, John & Sons, Inc., 1975).
A. Krishnamurthy, T. Little and D. Castanon, A pricing mechanism for scalable video delivery, Multimedia Systems 4 (1996) 328–337.
W. Lee, QoS provisioning technologies for media streaming transmission, Telecommunications Review 13(2) (2003) 188–197.
V. Li, W. Liao, X. Qiu and E. Wong, Performance model of interactive video-on-demand systems, IEEE Journal on Selected Areas in Communications 14(6) (1996) 1099–1109.
Y. Masuda and S. Whang, Dynamic pricing for network services: Equilibrium and stability, Management Science 45(6) (1999) 857–869.
P. Mundur, A. Sood and R. Simon, Threshold-based admission control for multi-class video-on-demand systems, performance, Computing and Communications (IPCCC 98) (1998) pp. 154–160.
S.M. Ross, Introduction to probability models, 6th Edition (Academic Press, 1997).
C.M. Rump and S. Stidham, Stability and chaos in input pricing for a service facility with adaptive customer response to congestion, Management Science 44(2) (1998) 246–261.
R. Steinmetz and C. Engler, Human perception of media synchronization, IEEE Journal on Selected Areas in Communications 14(1) (1996) 61–72.
D. Wijesekera and J. Srivastava, Evaluation of loss perception in continuous media, ACM/Springer Multimedia Systems Journal (2000).
C. Wu, S. Lee, W. Lin and F.Y. Lin, Novel optimal real-time admission control and buffer management for the video- on-demand (VOD) service, Telecommunication Systems 15 (2000) 217–233.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Kim, WS. Pricing model for internet-based multi-class Video-On-Demand(VOD) services. Telecommun Syst 33, 317–331 (2006). https://doi.org/10.1007/s11235-006-9017-x
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11235-006-9017-x