New Mode of Digital Entertainment Products Monopoly: A Perspective of Tencent

Digital entertainment products are significantly distinct from traditional products in both physical and economic characteristics. In network economy, monopoly in digital entertainment market differs from the traditional one. Using Tencent as an example, this paper analyzed the mode of monopoly in instant messaging market and its subsidiary markets. It reveals that low-pricing mode is determined by the characteristics of digital entertainment product, and is the only reasonable pricing method in such markets. Besides, this monopoly inevitably leads to Pareto efficiency, the traditional situation like high price and low product will not occur as well.