Differentiated Competition and Pricing Strategies in Film-and-Television Streaming under the Rise of Consumer Sovereignty

Abstract

Amid the growing digital economy—where core sectors account for approximately 10% of China’s GDP in 2025—and increasing consumer influence, China’s film and music streaming industry grapples with content homogenization, pricing challenges, and ambiguous collaboration models. This study examines differentiation and pricing strategies within film streaming platforms, focusing on iQiyi and Tencent Video as primary cases. Employing a mixed-method approach that integrates Porter’s Five Forces Model, case analysis, and comparative data—supplemented by theories of two-sided markets and reputation—the research reveals a highly oligopolistic market structure. iQiyi and Tencent Video collectively control over 70% of market share, with significant entry barriers. Platforms utilize tiered memberships, bundled packages, and dynamic pricing, yet face persistent difficulties such as high user price sensitivity (39% of subscribers recently canceled plans) and recurrent “churn-and-return” behavior. The study concludes that effective pricing fences aligned with perceived value, optimized advertising exposure gradients, and compliance-aware strategic design can alleviate current industry pain points. These findings contribute to theoretical discourse on two-sided markets and offer practical insights for platform pricing and regulatory governance.