Risk Optimization for Revenue-Driven Wireless Video Broadcasting Systems: A Copula-based Framework

Research output: Contribution to journalArticle

Abstract

The revenue of wireless service providers (WSPs) relies on their ability to efficiently satisfy the variable demands from end users (EUs). However, emerging video services create new risks owing to the diverse content requirements of heterogeneous EUs under uncertain markets. It is challenging as the risks by demands and prices are highly uncertain. In this work, a risk problem of high revenues is studied in which multiple video content items with different prices are broadcast to wireless EUs. The video content prices differ in their value functions in terms of popularity, ratings, and types. The objective is to maximize the revenue of WSPs under a certain Value-at-Risk (VaR) by adjusting the content prices and allocation of bandwidth resources. Furthermore, a VaR-based optimization framework for wireless video broadcasting systems is presented. First, the content characteristics are analyzed, and a copula model is then used to build the content value structure. The copula of a multivariate distribution corresponds to the description of the price-dependent structure. Second, a risk analysis for the effects of price fluctuations on revenues caused by uncertainty is conducted. A VaR model is associated with changes in the prices and allocated rates. Copulas are used to derive the bound of the VaR for the functions of dependent risks. Subsequently, detailed representations are provided to identify the distributional bounds for revenue functions of dependent risks. Lastly, a VaR-based framework that optimizes pricing and bandwidth provision is presented. For the solution, the risk regions of WSPs are modeled as polymatroidal structures to minimize the risk caused by different service demands and variable market prices. Experiments on different price markets demonstrated the proposed method was effective, thereby verifying feasibility of the proposed method.

Original languageEnglish (US)
JournalIEEE Transactions on Multimedia
DOIs
StateAccepted/In press - 2020

All Science Journal Classification (ASJC) codes

  • Signal Processing
  • Media Technology
  • Computer Science Applications
  • Electrical and Electronic Engineering

Keywords

  • Analytical models
  • Broadcasting
  • Copula
  • Multimedia communication
  • Polymatroid
  • Pricing
  • Reactive power
  • Revenue
  • Risk
  • Uncertainty
  • VaR
  • Wireless Video Broadcasting
  • Wireless communication

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