Allocating revenues in a Smart TV ecosystem

Abstract

This paper deals with the problem of allocating the revenues generated by subscription fees, advertising, and pay-per-view in a Smart TV (STV) ecosystem between the provider of the Internet TV service and the content producers. The goal is to obtain a suitable mechanism for the allocation of the revenues such that all stakeholders agree with it. For this purpose, we define cooperative STV games that reflect the revenue generated by the STV system. We characterize the core of these games and obtain simple formulas for their Shapley and Tijs values, which we prove belonging to the core.