Selection of Live‐Streaming Sales Methods for the Manufacturer and Streamer: The Role of the MCN Institution

ABSTRACT To cater to consumer shopping habits and stimulate demand, manufacturers increasingly sell products through live streaming. However, challenges remain in selecting the most suitable live‐streaming sales model. Additionally, it is also worth paying attention to whether the streamer chooses to sign with multi‐channel network (MCN) institutions. Based on this, we have studied three live streaming sales methods: manufacturer‐exclusive live streaming, unsigned streamer live streaming, and signed streamer live streaming. Firstly, the supply chain system involving the manufacturer, streamer, MCN institution, and live‐streaming platform was constructed. Secondly, equilibrium results were obtained under different methods, and an analysis was conducted on the strategic choices and preferences of various parties regarding live‐streaming sales methods. Finally, we further consider the manufacturer's strategy choices when facing streamers with different traffic levels and discuss the pure commission model in this research. The main findings are as follows: (i) The key to achieving the win‐win situation for the manufacturer and streamer lies in the slot fee compensation coefficient, the sharing ratio charged by the MCN institution, and the streamer's salary. (ii) The MCN institution should appropriately reduce the sharing ratio to achieve cooperation with the manufacturer and streamer. (iii) The manufacturer will opt for the pure commission model only when the additional commission in this model is lower than the slot fee in the traditional commission model.