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Source/poor comment (ID: chaping321)
Today, iQIYI VIP members have increased their prices again.
Now the ordinary monthly card costs 30 yuan, and the continuous monthly fee is 22 yuan (previously 19 yuan) 。
For this wave of price increase, iQIYI said that the price of members has always been low, which has affected the healthy development of the industry. In order to establish a more benign industrial ecology, iQIYI decided to adjust the price.
The price of current members is not low, and the poor comment is not good.
But I know that, of course, iQiyi members have to raise their prices. Otherwise, as soon as the next quarter's financial report comes out, they may be beaten on the ground by investors.
According to the documents submitted by iQIYI to the U.S. Securities and Exchange Commission, as of February this year, Baidu held 52.2% of iQIYI's shares and 91.6% of its voting rights ↓↓
Although iQIYI has been ostensibly very popular in recent years, and is one of the top three video websites along with Youku and Tencent Video, it has not lived well in real life and has been burning money fiercely. It is roughly estimated that it has lost more than 40 billion since its listing.
Last month, iQiyi released its third quarter financial report, which showed that the net loss attributable to iQiyi in the third quarter reached 1.7 billion yuan.
The loss in the same period last year was 1.2 billion yuan, The loss expanded by 42% year on year.
It must hurry up and make some big moves to save itself.
How to save it?
Like most video platforms, iQIYI's profit means are mainly composed of member services, advertising services, content distribution income and other income.
Member services accounted for the largest part, reaching 4.2 billion yuan in the third quarter, accounting for revenue 56% 。
IQIYI's financial report for the third quarter of this year
The unit of measurement is thousand yuan ▼
In addition, iQIYI has received more and more member services in recent years, with 10.6 billion in 2018, 14.4 billion in 2019 and 16.4 billion in 2020.
It is obviously feasible to continue to grasp this income.
The number of iQIYI members peaked after exceeding 100 million. The total number of members in the third quarter was 103.6 million, more than 2 million less than that in the second quarter.
At this time, it is a general trend to increase the average income per user, so the increase of membership fees will naturally be put on the agenda.
In addition, in October, iQIYI also cancelled the "advance on-demand" program.
Gong Yu, CEO of iQIYI, said this was to Satisfy members...
When lawyer Wu Shengwei, a member, sued iQIYI for "advance on-demand", you did not satisfy the member.
Well, when netizens scold "advance on-demand" on hot search, you don't satisfy members.
Why didn't you cancel "On Demand Ahead" even after being scolded?
Let's review what Gong Yu said in the financial report conference call in the fourth quarter of 2019: advance on-demand meeting is an important way to improve the average income per user ↓↓
Now that "advance on-demand" has been cancelled, such means as increasing membership fees and "single film payment" for some films are certainly more important.
So, up, up.
You may be curious, The membership fee of iQiYiGuang can earn more than 10 billion every year, why is it still losing money?
Because they killed themselves.
Taking iQiyi as an example, Q3 iQiyi's revenue is 7.6 billion yuan, while the content costs Up to 5.3 billion yuan. This means that most of the total revenue is eaten up by the content cost.
Click to see the larger picture ▼
In 2019, iQIYI's total revenue was 28.9 billion yuan, its revenue cost was up to 30.3 billion yuan, and its content cost was 22.2 billion yuan.
In 2020, the total revenue of iQiyi will be 29.7 billion yuan, the revenue cost will be 27.8 billion yuan, and the content cost will be 20.9 billion yuan.
This content cost is mainly the cost of purchasing copyright and producing original content.
In short, the reason why the content cost is so high is that the video platform has struggled Self made content , many original content studios have been set up, which has made a lot of efforts, and the second reason is that High copyright costs.
However, such high content costs, It is completely rolled up by the industry.
The copyright contest started in 2009 and reached a climax around 2015.
At that time, video websites and TV stations scrambled for resources and spent heavily to buy popular TV dramas and sports events.
The online copyright of the TV series "Heart Attack", which was not finalized in 2011, sold for 20 million yuan.
In 2015, Sports Power won the copyright of CSL from 2016 to 2020 with 8 billion yuan.
You should know that in 2015, the copyright price of CSL sold by CSL was between 70 million and 80 million yuan.
Shock and high price were the watchers' aspirations at that time ▼
In the 2018 "Biography of Ruyi", at that time, each of the two major satellite TV stations in Jiangsu and Dongfang offered 300 million episodes, while a video website obtained the exclusive online broadcasting right at the price of 900 million episodes.
Mmm... You should know that the online copyright price of 81 episodes of "Wulin Waizhuan" in 2006 is 100000 yuan, about 1200 yuan for each intensification.
I can understand that the copyright fee will definitely increase year by year, but is such a grandiose increase normal?
You know, popular TV dramas are limited. If you don't pay for them, they will be bought by your rivals, And the traffic, advertising revenue and member service revenue behind the traffic will also flow to the home with high-quality content.
And you will find that in recent years, the TV dramas that have sold at a high price are either popular IPs or have the blessing of traffic stars.
The main idea is that these video websites are different from the traditional drama center. They often do not buy based on the quality of the script Just look flow 。
The traffic star is the traffic, and the popular IP is also the traffic. As long as there is traffic, it will succeed in business.
This is why there are more and more brain damage dramas, and the price is still so expensive.
Wang Hailin's comments are wonderful ▼
What's more, now all major video websites have also started talent shows, making their own traffic stars, and then offering traffic stars higher pay, rolling from one link to another.
Under the operation of ring by ring, The price of copyright has been constantly raised, and the film remuneration of actors has become more deformed.
IQIYI is relatively smart. It took the lead in making homemade dramas. Last year, it produced several good films. If we can make more good dramas like Secret Corner and Silent Truth, we will surely have more users paying the bill.
In addition, they seem to use the accelerated depreciation method in the copyright fees. They draw more depreciation in the early use period and less in the later use period. If they can survive, the cost of the later content will become smaller and smaller.
However, the current situation, after all bring trouble to oneself 。
You said that they had created a lot of brain damage dramas, and they were the ones who messed up the film and television industry ecology. They also tried to make consumers pay under the banner of "building a healthy industry ecology".
Of course, if you want to comment on it, the capital has the right to set the price for the goods it sells, and the increase of membership fee is justifiable.
But please do not forget that consumers also have the right to choose to buy or not to buy.
If the content quality cannot be improved, how many people will pay for the greed of capital?
By: Yanan Edit: Xiaoxinxin&Jiejie Cover: Brilliant
Source of pictures:
IQIYI official website
Weibo: iQIYI VIP member, Sina Technology
sec.gov 《 iQIYI Announces Third Quarter 2021 Financial Results 》
sec.gov/ix?doc=/Archives/edgar/data/0001722608/000156459021011590/iq-20f _ 20201231.htm
Changjiang Business Daily, "iQiyi lost 40 billion yuan in the past seven years due to inefficient capital increase"
Zinc Finance and Economics, "iQIYI's membership fee is raised again, this time it is a price increase without volume increase"
Economic Observer: Tencent's 1.27 billion yuan guarantee of Ruyi Biography, Xinli Media has not fulfilled its performance commitment
Sohu Sports: The copyright price of CSL soared 20 times! The price of cabbage was only 150 million in three years
china.huanqiu.com/article/9CaKrnJUMXY
(Statement: This article only represents the author's view, not Sina.com's position.)
