  In this paper, we consider a novel business model of video websites via
Membership-Advertising Mode in wireless network, where the video websites
provide three video services for mobile users: \textit{VIP-Member} service,
Regular-Member service and Non-Member service. The VIP-Member (Regular-Member)
service provides the highest level (middle level) quality and non-advertising
video service with high (low) price, while the Non-Member service provides the
lowest level quality and advertising-containing video service for free.
Meanwhile, the video websites sell their advertising spaces to the advertiser
to create extra revenues. We formulate the interactions among the advertiser,
video websites and mobile users as a three-stage Stackelberg game.
Specifically, in Stage I, the advertiser decides the advertising budget; in
Stage II, the video websites determine their advertising spaces selling
strategies for advertiser and the membership pricing strategies for mobile
users; in Stage III, the mobile users make their own decisions on video
watching strategies for each video website. We analyze the equilibrium of each
sub-game. Particularly, we derive the closed-form solutions of each mobile
user's optimal video watching strategies, each video website's optimal
membership price and the optimal advertising spaces selling number. In
addition, we also investigate the piece-wise structure of the advertiser's
utility function, and further propose an efficient algorithm to obtain the
optimal advertising budget. Finally, numerical results show the impacts of
different parameters' values on each entity's utility as well as the key
indicators.
