Image source: Oriental IC
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For iQiyi, the price increase is a last resort, after all, the number of members has not risen for a long time. As of the end of the third quarter, iQIYI's subscription membership reached 103.6 million, down 1.2 million from last year's 104.8 million.
Will the price increase "scare off" more members? Standing on the edge of the cliff, iQiyi should have taken care of a lot. According to the Q3 financial report, iQiyi's net loss for the current period was 1.7 billion yuan (about $268.4 million), compared with a net loss of 1.2 billion yuan in the same period last year. Income growth is weak, content investment continues to increase, short video platforms "rob" users, any crisis, is iQIYI's heavy burden. Whether it is layoffs or price increases, iQiyi must "survive with a broken arm".
Among the three parent video platforms of IYoteng, Tencent Video and iQiyi have always been very tight in the number of members, but in the third quarter, the gap has gradually widened, and the number of Tencent Video members reached 129 million, 25.4 million more than iQIYI.
In terms of membership fees, Tencent Video was originally the most expensive of the three, with 30 yuan per month and 20 yuan per month, but the price of seasonal and annual passes was significantly lower than that of iQiyi. The recent promotional price is 168 yuan for consecutive years, which is 50 yuan lower than iQiyi.
If there is no explosive support, iQiyi may be difficult to resist the attraction of Tencent Video to users after the price increase. At the end of the year, iQiyi's year-end drama "Wind Rises luoyang" has a good reputation, and although Mi Wei's "Annual Comedy Competition" is not as topical as "Strange Story", it has been on the hot search several times, which is the first shot. Some netizens commented that choosing to increase prices at this time is a good time.
However, Tencent Video's "Knife Line in the Snow", which was launched on the 15th, is believed to be a possibility to snipe "Wind Up Luoyang" halfway through. As the year draws to a close, iQiyi is indeed a bit difficult.
More importantly, how much revenue contribution can the price increase bring to iQIYI?
iQIYI did not disclose the specific classification of members, but it is undeniable that a large number of annual users buy through joint membership, such as iQIYI and JD.com PLUS joint membership is 198 yuan, which means that its actual income is lower than the standard price. According to the "IT Times" reporter observed, at least as of the 16th, some joint member channels have not increased prices. Relying solely on monthly users, the revenue growth that can be brought to iQIYI may be limited.
The good news is that on December 15, the State Administration of Radio, Film and Television released the latest "Standard Rules for the Review of Online Short Video Content (2021)" on its official website, announcing the standard rules for the review of online short video, of which Article 93 mentions that it is not allowed to "cut or adapt all kinds of audio-visual programs and clips such as movies, TV series, and online film and television dramas without authorization", which is regarded as a response by the regulatory authorities to the previous long video platform complaints about suspected infringement phenomena such as "watching a drama in five minutes" and "two innovations" on short video platforms.
Can the new rules save iQiyi? Want to completely "return the blood", iQiyi is still a long way.
Author/IT Times reporter Hao Junhui Jiang Liwen
Editor/Hao Junhui Kicked Sister
Typography/Ji Jiaying
Photo/ iQiyi Tencent IT Times Oriental IC
Source/IT Times public account vittimes