Content Value Dynamics in Digital Platforms: Strategic Monetization and Operational Design

Digital content platforms rely on value co-creation among users, creators, and the platform. Content value, including historical accumulation, influences platforms’ pricing strategies, quality decisions, and monetization potential. This study explores the impact of content value on pricing and quality strategies under centralized and decentralized content configurations. We capture the relationship between historical content quality and user engagement. The interplay of historical quality and content type is characterized as content value dynamics, which influence platforms in managing content supply, user engagement, and revenue generation under different modes. Results show that operational modes offer distinct advantages depending on subsidy levels, advertising revenue-sharing mechanisms, and the platform development stage. The centralized mode performs better under limited subsidies, particularly by offering content with higher continuity. The decentralized mode benefits from diverse creation and flexible incentives to achieve rapid market scaling when subsidies are sufficient. Notably, higher advertising revenue-sharing is not always optimal, especially in low-advertising environments. Additionally, the platform development stage affects optimal mode selection. The decentralized mode with low subsidies may achieve early profitability, whereas the centralized mode offers greater potential for sustainable long-term growth. This work contributes to platform-based supply chain theory by incorporating dynamic content value into operational decision-making. It provides operational insights for platforms regarding mode design and the optimization of value-based monetization strategies.