Exclusive content in two-sided markets

This study investigates the role of exclusive content provision in two-sided markets in which both sides are allowed to join multiple platforms. We consider a model of duopolistic two-sided platform market with a monopolistic multiproduct firm (content provider) on one side and consumers on the other. The model demonstrates that the monopolistic content provider uses exclusivity as strategic commitment to balance two opposite effects on its bargaining power: the positive effect caused by the increase in multihoming consumers and the negative effect caused by the restriction of distribution channels.