Comparative Analysis of the Business Models of the Two Leading Short Video Apps in China, Douyin and Kuaishou:

Abstract

The essence of the business model concept lies in value creation and value capture. This has been a focus of attention in marketing: value creation has been studied from the viewpoint of customer interaction, while value capture has been considered from the perspective of pricing. However, the two areas have not been discussed in an integrated way. Pricing has been examined based on the revenue model, and in this paper, we focus on the revenue model and value creation, in order to broaden the theory and practice of marketing. By analyzing Chinese short video applications that create value through active interaction with customers, we explore the consistency between value creation and capture, and the implications for the business model concept in marketing research.

Keywords

• business model
• platform
• revenue model
• advertising revenue
• live commerce