Rakuten on April 24
"Work together to create the future" 2024 iQIYI World Conference opened in Beijing yesterday, iQIYI founder and CEO Gong Yu combined with the macro economy, copyright protection, scientific and technological innovation and other internal and external environments faced by the video industry, from content positioning, content production, improvement of age-appropriate services, children's services, development of market space, business model innovation, cracking down on piracy, and improving the industry ecology, shared his latest thoughts on the industry.
The per capita GDP exceeds 10,000 US dollars, which means that the inflection point of consumption is coming, and the macro trend has given the entertainment industry more room for business development.
It is estimated that by 2033, China's elderly population will exceed 400 million, and the sunset red industry is becoming a sunrise industry.
Gong Yu said that in the face of population trends, iQIYI will strengthen the "one old and one young" service, and improve the ageing through product design and business processes, so as to help children grow up healthier and safer. At the same time, generative AI-led technological innovation will also bring opportunities for overtaking in corners. iQIYI will also combine the subversive impact of generative AI on the film and television industry in addition to advertising and membership models, and explore a larger market space, including derivative commerce.
Gong Yu also said that April 23 is the first day of iQIYI's 15th year, and I hope that everyone can accompany iQIYI in the next 3-10 years to realize these industry thinking.
The following is a transcript of Gong Yu's speech:
Hello friends. First of all, I would like to talk about some of the environments we are facing now, from macroeconomic to realistic. The domestic macro economy is not optimistic, but the trend is positive.
At the same time, we are also facing some challenges in terms of literary and artistic creation space, copyright protection, public opinion environment, business model, and industrialization.
Technological innovation, which is a good thing, especially generative AI. If the creator is interested, he can cooperate with us on a project and have a deep understanding of what iQIYI generative AI can do. There is a law in scientific and technological innovation, and the whole society usually overestimates its impact on innovation in the short term and underestimates its impact in the long term.
We all say that in the face of AI, what should we do as screenwriters, artists, and directors, panic and numbness are terrible things, and numbness and panic are not right. We should think more correctly about what the impact of some types of work and some jobs will be on the film and television industry in three or five years. We should now think more about how the industry will change in two or three or five years, and make more long-term plans.
In the next topic, I would like to talk about the issue of life and old age. In 2023, the elderly population (over 60 years old) in mainland China will be about 300 million, and it is predicted that by 2033, China's elderly population will exceed 400 million, accounting for a quarter of the total population, and will reach a peak of about 487 million in 2053, and one-third of the total population will be over 60 years old.
In 2024, we find that the sunset red industry is about to become a sunrise industry. According to the survey, urban residents are dazzled before the age of 48 because of the frequent use of mobile phones, and the muscles on both sides of the lens are highly tense, resulting in rapid aging. iQiyi mobile terminal,The proportion of users over 40 years old is decreasing,Fewer over 50 years old,The important reason is that the words on the mobile phone are too small,The color is too blurry、More grayscale、Black and white are not clear,It is not suitable for aging。
The law of consumption inflection point can be understood as follows: the per capita GDP of a country or region is greater than 10,000 US dollars per year, and the country's cultural and entertainment consumption has a faster growth rate than GDP. In 2019, the per capita GDP of Chinese exceeded 10,000 US dollars, and we believe that the laws of history can be reproduced in the entertainment industry, and the consumption inflection point gives us more space.
Combined with these backgrounds, I would like to talk about iQIYI's thoughts from the following eight aspects: content positioning, content production, ageing, children, market space, business model, anti-piracy, and industry ecology:
April 23rd is the first day of iQIYI's 15th year, and the questions I talked about are likely to be just one sentence, but it will take us three years, five years, or even the next ten years.
First, continue to pursue the high quality and diversity of content positioning. The pursuit of high quality is to break the ceiling and go up, and it is good to break the floor, and it is also the rigid demand of human beings, but we can't do this well, we won't do it, so we go up and pursue high quality. Diversity means that we should be more open-minded, unshackle, and enrich our works to meet the needs of different people.
Second, generative AI is widely used in content creation to improve industrialization. Although the current creative ability of generative AI is relatively weak compared to art, the development of technology is not linear, and the development of technology will make the creative ability of generative AI improve exponentially. To increase the degree of industrialization, on the one hand, there are rules, but there are rules that are difficult to enforce, and it is also necessary to rely on technology to assist in completion.
Third, through product design, business processes, etc., to improve the ageing, I said simply, but in fact it is difficult. Internet products have been shouting slogans to serve young people, and now the sunset red industry is a sunrise industry, think more about how people in their 40s, 50s, 60s, and 70s use your products.
Fourth, we need to serve young people and children well. We also need to invest more in serving children, because they are the future, and they want to grow up healthier and safer. Our thinking,First, the children's mode on the TV side,The content in this mode is very clean,The interface is also more suitable for children,Let parents feel more at ease;The second is the Qibabu on the mobile phone,The interface is based on the picture、Image,The content is safer。 Of course, in the future, iQiyi has more measures.
Fifth, open up market space. Whether it is the domestic film and television industry or the Internet industry, the era of relying on staking and population growth has passed. In addition to digging deep into the domestic market and improving quality, we will also explore greater growth space for overseas business.
Sixth, business model innovation. In addition to the traditional advertising and membership business models, we will also expand derivative businesses. The composition of revenues and profits of major Hollywood companies is very clear, and we've been saying it for years – the percentage of revenue from derivative businesses is too low. We will never be able to keep up with Hollywood, but technological innovation led by generative AI has given us the opportunity to overtake in corners, and there is a lot of room for derivative business development.
Seventh, crack down on piracy. No matter how creative we are, there are always thieves who steal our wealth and rewards at a low cost, so we unite all the forces that can be united to fight piracy.
Eighth, industry ecology. There are still many areas that need to be optimized in the way iQIYI cooperates with partners and different roles in the industry.
I hope these points can give you a memory, and I hope that in the next three years, five years, or even ten years, everyone can help iQiyi achieve one key point after another.
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