CONCEPTUAL BASIS FOR DIGITAL PLATFORMS DEVELOPMENT IN THE CONDITIONS OF DIGITAL ECONOMY FORMATION

  • Andrii Semenog
Keywords: digital platform, digital economy, platform economy, platform monetization, digital platform models

Abstract

The article deals with the essence, types and ways of monetization of digital platforms in the conditions of digital economy formation. It is stated that the digital platform is a digital economy company that provides digital space for value creation by users, relying on the use of modern software, data analysis algorithms and network effects. The basic approaches to the classification of digital platforms models are analyzed. The comparative characteristics of the main types of platforms are also presented, among them transactional, innovative, integration and investment platforms.
It is determined that the purpose of digital platforms is to mobilize people for joint participation, to create added value and to generate revenue from these processes in the form of additional value part appropriation created by platforms for the client – monetization. The most popular monetization methods are presented. They include transaction fees, access fees, advanced access fees, and advanced patronage fees. It is noted that, digital platforms choose a subject to pay according to the differences between the users of the platform, their material and social status, the motivation to connect to the platform, the incentives and the potential amount of value they can receive from the platform. In general, there are four combinations to choose subjects to pay for digital platform services: all users are charged; some users pay full costs, and some receive preferential terms; almost all users are charged, star rating users receive preferential terms; almost all users are charged, and users who are very price-sensitive receive preferential terms.
Also, it is emphasized that digital platforms, while saving on the lack of large production capacity and using algorithms to analyze customer preferences and desires, pose serious risks to the existence of classic businesses and companies, limiting competition, especially for small and medium-sized enterprises.

Published
2019-09-28