Dynamic Pricing for Multimedia Content via Variable Commercial Slots
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Solution Overview
Problem
Current multimedia content distribution models, such as broadcast TV, lack user flexibility in scheduling and pricing, with fixed prices and commercial durations, while Interactive TV systems fail to effectively target users with relevant ads, missing opportunities for monetizing premium content experiences.
Innovation Solution
A method and system that allows users to negotiate prices for multimedia content, calculating the optimal number of commercials to show based on user preferences and available commercial slots, enabling personalized pricing and targeted advertising.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If broadcast TV shows commercials throughout the content, then the service provider can monetize the content, but users are discouraged from continuing to watch and cannot control commercial duration
Solution Approach 1:
The system dynamically adjusts commercial duration and pricing based on user preferences. Users can select different commercial duration options (e.g., 0 minutes, 5 minutes, 10 minutes) and the price varies accordingly. This dynamic adjustment resolves the contradiction by making both monetization and user control viable through real-time parameter changes.
Solution Approach 2:
The patent changes the parameter of commercial duration from a fixed value to a variable that users can select. By offering multiple duration options (0min, 5min, 10min, etc.), the system allows users to control commercial exposure while the provider maintains monetization capability through variable pricing based on selected duration.
2Ease of operation
If Interactive TV shows little or no commercials, then users can watch content freely, but the price of content becomes high and all users pay the same price
Solution Approach 1:
The system applies local quality by offering different pricing conditions to different users based on their individual preferences. Instead of uniform pricing, each user receives a personalized price quote based on their selected commercial duration tolerance. This allows the service to adapt to local user characteristics and preferences.
Solution Approach 2:
The pricing model transitions from static uniform pricing to dynamic personalized pricing. The system calculates and presents customized price quotes to each user based on their commercial duration preferences, enabling both user flexibility and personalized pricing adaptation simultaneously.
3Device complexity
If broadcast TV uses fixed pricing model, then the service provider can simplify pricing management, but users cannot negotiate or choose different price points
Solution Approach 1:
The system implements self-service pricing where users independently select their preferred commercial duration and receive an automatic price quote. This eliminates the need for complex negotiation processes while providing users with pricing choices. The automated calculation and presentation of personalized prices based on user selections resolves the contradiction between simplicity and adaptability.
Data Source
AI summary
A method and system for determining a best price to rent a multimedia content being offered for viewing by at least one service provider to a plurality of users through a communication network is provided. The service provider offers the multimedia content to the plurality of users at a base price. The method includes receiving a first price from the user that he/she is willing to pay for the multimedia content. The first price is lesser than the base price. The method further includes calculating a number of commercials that need to be shown the user to recover a cost to show the multimedia content at the first price. Furthermore, the method includes calculating a best price that the service provider can offer to the user when the service provider does not have enough commercials to offer the multimedia content at the first price.