Mango TV will raise prices from January 2 next year, pursuing revenue growth rather than user size

Wen 丨 "Late Finance" Gong Fangyi

Following iQiyi's announcement of price increases a week ago, Mango TV also announced price increases on four of its six membership fees on the 22nd:

Consecutive monthly subscription prices rose by 1 yuan to 19 yuan;

Prices rose by $5 to $58 during consecutive seasons;

The price of the consecutive package increased by 10 yuan to 218 yuan;

The price of the annual pass rises by 20 yuan to 248 yuan;

The price of monthly and seasonal cards remains unchanged, still 25 yuan and 68 yuan.

Originally, Mango TV had high advertising monetization efficiency because its content was mainly self-made variety shows and backed by Hunan Satellite TV. They advertise both soft and wide implants and hard wide patches. The advertising income of other video platforms that are mainly based on copyright can only rely on patches.

In addition, the previous review pressure of variety shows was smaller than that of film and television series, which to a certain extent also brought more stable returns.

According to the statistics of Changjiang Securities, in 2020, the proportion of self-made variety shows broadcast in the mango season will reach 89%, the proportion of Tencent Video is 45%, and the proportion of iQiyi and Youku is less than 40%. In the first half of last month, Mango TV's "S-class" variety shows such as "Daughters in Love" had a comprehensive cost and income of about 8 million yuan and 13 million yuan per episode, respectively.

In the first half of this year, Mango TV's advertising revenue increased by 75% year-on-year, far exceeding its peers.

User size, number of paying subscribers, and per capita spending are Mango TV's weaknesses. In August 2021, iQIYI's monthly users reached 581 million, compared with Mango's 252 million; in 2020, iQIYI's annual per capita expenditure was 162 yuan, and Mango TV's was 90 yuan.

Theoretically, with a better return on investment, they can use the price increase of their opponents to maintain the original price and attract more users. But they don't do it, but follow iQiyi's price increase. Between revenue growth and user size, Mango TV chose the former.