patterns 87 Multi-sided platforMs VP CR CH CS KP KA KR R$ C$ The value proposition usually creates value in three main areas: First, attracting user groups (i.e. Customer Segments); Second, matchmaking between Customer Seg- ments; Third, reducing costs by channeling transactions through the platform. The main costs incurred under this pattern relate to maintaining and developing the platform. The key resource required for this business model pattern is the platform. The three Key Activities are usually platform manage- ment, service provisioning, and platform promotion. Business models with a multi-sided platform pattern have a distinct structure. They have two or more customer segments , each of which has its own Value Proposition and associated Revenue Stream. Moreover, one Customer Segment can- not exist without the others. Each Customer Segment produces a diΩerent revenue stream . One or more segments may enjoy free oΩers or reduced prices subsidized by revenues from other Customer Segments. Choosing which segment to subsidize can be a crucial pricing decision that determines the success of a multi-sided platform business model. bmgen_final.indd 87 6/15/10 5:36 PM