Just a few days ago, Iqiyi gave a positive answer. On May 26th, iQiyi released its financial report for the first quarter of 2022. The financial report shows that in the first quarter of this year, iQiyi's total revenue was 7.3 billion yuan, and its non-GAAP operating profit was 330 million yuan. This is the first time that iQiyi has achieved quarterly profit since its establishment 12 years ago. It is worth noting that in the income structure of iQiyi, membership income accounts for a relatively large proportion, more than half, reaching 60%. What? The income paid by members is actually higher than the boring advertising income? This can't help but remind people of the membership price adjustment that has become a topic many times in the past two years.
On April 20th this year, Tencent Video adjusted the price of Tencent Video VIP and Super Video VIP members. This is another price adjustment of Tencent video after the first price increase of Tencent video members in April 20021year. Since the self-love Qiyi video started the first shot of member price increase in June 5438+065438+ 10, various video platforms have followed suit and constantly "voiced". Long video platforms such as Tencent Video, Mango TV and Mi Gu Video have successively announced price increases, and many platforms have even completed the second round of price increases.
The price increase rate is reduced round by round, which consumes the price acceptance of users.
What is the price increase of the long video platform that makes hundreds of millions of drama chasers shout "It's too difficult"? Let's take the three platforms "Aiyouteng" as an example to make a detailed analysis.
Table 1 Summary of Price Increase of Tencent Video Platform
Tencent video VIP member
original price
202 1.4. 10
2022.4.20
price
range
price
range
Continuous monthly subscription
15
20
33%
25
25%
Continuous packaging season
45
58
29%
Sixty-eight
17%
Continuous annual package
178
2 18
22%
238
9%
Ordinary monthly card
20
30
50%
30
0%
Ordinary season card
45
Sixty-eight
5 1%
Seventy-eight
15%
Ordinary annual card
168
253
5 1%
258
2%
Tencent Video conducted two rounds of membership price increases on April 2022 10, 202 10 and April 20, respectively. Take Tencent video VIP members as an example. In the first round of price increase, the prices of three consecutive members all rose by about 30%, and the prices of three ordinary members all rose by about 50%. The price increase of ordinary members is greater than that of continuous members. In the second round of price increase, the price increase of continuous members is more obvious than that of ordinary members. Compared with the first round of price increase, the second round of price increase is small, and the average monthly card members with relatively high prices have zero growth.
Table 2 Summary of price increase of iQiyi platform
Iqiyi gold VIP member
original price
2020. 1 1. 13
202 1. 12. 16
price
range
price
range
Continuous monthly subscription
15
19
27%
22
16%
Continuous packaging season
45
58
29%
63
9%
Continuous annual package
178
2 18
22%
2 18
0%
Ordinary monthly card
19.8
25
26%
30
20%
Ordinary season card
58
Sixty-eight
17%
Seventy-eight
15%
Ordinary annual card
198
248
25%
248
0%
Iqiyi conducted two rounds of membership price increases in 165438+ 10 and 202 165438+February16 respectively. Take the gold VIP members of iQiyi as an example. In the first round of price increase, the price increase of six members was around 20%. Compared with the first round of price increase, the second round of price increase is small, and the membership of the two-year card with relatively large absolute value has zero growth.
Comparing the member price increases of Tencent Video and iQiyi comprehensively, the price increase characteristics of the two platforms are similar. In the first round of price increase, a relatively large increase in membership price has been achieved, while in the second round, the increase in membership price has decreased, and some relatively high-priced projects have not increased. Based on this, it can be inferred that the price growth of video platforms will be limited in the future.
As one of the three long video platforms, Youku Video has not directly increased its price, but in the past year, the intensity and frequency of launching membership promotions have obviously decreased, and in some hit dramas, sharing with friends can unlock the latest episodes, which is similar to "cutting the knife". From these phenomena, we can find that Youku Video is gradually and indirectly adopting the activity of increasing the price of members.
The stock of members tends to be stable, and the price increase leads to the loss of users.
The first to bear the brunt of the price increase is the drama chasers who pay hundreds of millions for it. How will everyone react? Will they happily accept continuing to pay the bills, or will they leave angrily and stop recharging their members?
For a long time, people would rather spend money on luxury goods and borrow video members everywhere, which is a common phenomenon in society. However, after the price increase of video platform, disputes between users are inevitable. Only a few users think that the membership fee of video platform is at a low level for a long time, and the price increase is to make the industry develop healthily and produce more good content. More consumers don't agree with the price increase of video platforms. Some consumers think that the price increase needs to be based on high-quality content. The video platform "can't do anything, and the price increases first". Content homogenization is serious, and there are fewer and fewer high-quality dramas and programs. Frequent price increases are unreasonable. However, some consumers are accustomed to the existing prices, and frequent price increases have a great impact on users' psychological expectations, and the resulting rebellious psychology will also lose users.
Figure 1-202 1 Changes in the number of registered members of iQiyi and Tencent Video.
Figure 1 shows the change of the number of registered members of iqiyi and Tencent video in -202 1 year. By observing the changing trend of the number of members, we can also find that the growth of registered members tends to be flat since 20021,which indicates that the stock of video platform members tends to be stable, and the marginal utility brought by attracting users with low-priced members for a long time is no longer significant.
In addition, after the first price increase of iQiyi in June at 5438+065438+ 10/3, the number of registered members in the fourth quarter decreased from150,000 to120,000. After the price increase of iQiyi and 200211216 in the second round, the number of registered members in the fourth quarter of 2002 104 decreased from104 million to 96 million. After the first price increase of Tencent Video in April, 20021year, the number of registered members remained unchanged in the second quarter of 20021year, but the number of registered members declined in the fourth quarter of 20021year. Compared with the year before the price increase, the number of registered members of Tencent Video has been increasing, and the price increase measures have made the growth trend of Tencent Video stagnate. Based on the situation of the two video platforms, we can find that there is still a certain degree of loss of registered members due to the price increase.
The video platform is in trouble, and the price increase turns losses into profits.
Why does the price of long video platform members go up and then up? Is it because the video platform is addicted to "cutting leeks" or is it a helpless move based on the current business situation? Next, starting with the financial report of iQiyi, it reveals the reasons behind the price increase of the long video platform.
Figure 220 18-202 1 profit change of iqiyi
Judging from the financial reports from 20 18 to 202 1 published by iqiyi, the profit has been negative since its listing, and it is in a state of long-term loss. The total net loss in three years was 32.454 billion yuan, and it was not until the latest financial report in the first quarter was released that the profit was only 300 million yuan, which was really not a big sum. Judging from the current public information, Tencent Video, Youku and other head video platforms are still in a long-term loss state.
Fig. 320 18-202 1 iqiyi's mobile proportion change
Fig. 3 shows the change of the flow ratio of iQiyi from 20 18 to 202 1. It can be seen that the flow ratio of iQiyi from 20 18 to 202 1 is lower than 1.5, and even lower than 1 in some months. Generally speaking, the company's current ratio is normal between 1.5-2.5. This shows that the liquidity ratio of iQiyi is lower than the normal level, and the company's solvency is relatively poor. In view of the situation of iQiyi, improving profitability and increasing the amount of current assets is one of the ways to solve the company's poor solvency.
The general loss of long video platforms is not unique to China. Looking abroad, Netflix, which has always been regarded as a model for the development of long video platforms, is not optimistic. In Q 1 financial report on April 20, Netflix's global users decreased by 200,000; After the financial report was released, Netflix's share price plummeted by 35%, causing a shock in the global Internet industry.
In the past two years, various video platforms have taken breakeven or turning losses into profits as one of their business objectives. Iqiyi proposed the performance prospect of achieving annual non-GAAP operating profit in 2022. Tencent Video hopes to maintain its leading position and gradually take measures to optimize costs and reduce the financial losses of Tencent Video. Also in the third quarter financial report in 2022, Ali proposed a vision for Youku to reduce losses. Therefore, based on the business goal of turning losses into profits and improving the financial situation of video platforms, price increase is something that all long video platforms must do.
Short-term price increases can alleviate the predicament, and more diversified means are needed in the long run.
The long video platform is facing the helpless situation of long-term cost and profit upside down. Although iQiyi successfully turned losses into profits in the first quarter, can the price increase of members really help the platform get out of the predicament and have a bright future?
In the short term, the price increase can alleviate the operational difficulties of the long video platform to some extent. In the early stage of video platform development, the video platform mainly considered the number and content of members. But now that users have grown to a certain extent, the future growth space is limited, and the video platform should consider the operating conditions such as profit and loss. Due to the attraction of good content to users, the stickiness of users to the platform, and the improvement of people's awareness of paying, the price increase can alleviate the business dilemma of long video platforms to some extent.
In the long run, the price increase of members cannot fundamentally solve the business dilemma of long video platforms. The reason for the long-term loss of video platforms is not only the low operating income caused by attracting members at low prices for a long time, but also closely related to market competition and operating costs.
First, the rise of short video platforms. Membership service and commercial advertising are the two mountains of operating income of domestic long video platforms. Take the third quarter of iQiyi 202/kloc-0 as an example, its total operating income is 7 187692 yuan, and its membership service is 39755 14 yuan, accounting for 55.31%of the total revenue; Online advertising services 184023 1 yuan, accounting for 25.60% of the total revenue. However, in recent years, major short video platforms have grown rapidly, gathering a large number of creative groups, producing high-quality and novel content, attracting a large number of consumer groups and building a relatively complete industrial chain. The 49th Statistical Report on Internet Development in China released by CNNIC shows that as of 2002165438+February, the number of short video users was 934 million, an increase of 60.8 million compared with 65438+February, accounting for 90.5% of the total netizens. Due to the huge consumer groups, the short video platform has attracted a large number of commercial advertisements, artists' announcements, comprehensive film and television announcements and other customer resources, breaking the long video platform's model of trying to monopolize with its own closed-loop traffic, and greatly affecting the advertising revenue of the long video platform.
Figure 420 18-202 1 changes in operating costs of iqiyi
Second, the increase in operating costs. In recent years, the cost of copyright procurement and self-made content input of long video platforms has been rising. According to public data, the cumulative content investment of the three platforms of Youaiteng has reached hundreds of billions. Obviously, the content input of each platform is still showing a trend of continuous expansion. This process makes the long video platform fall into the swamp of business difficulties, and also invisibly intensifies the deformity and out of control of the industry development. As can be seen from Figure 4, since the second quarter of 20 18, the operating costs of iQiyi have all been above 5 billion, with high fluctuations. In order to cut costs, at the end of 20021,iqiyi shelved and suspended many projects and "laid them flat". In addition, iQiyi has also made great efforts in sales and general administrative expenses. The financial report shows that the expenses in the first quarter of 2022 were 740 million yuan, down 38% year-on-year, which was very helpful for iQiyi to turn losses into profits.
In addition to cutting costs, we also need to pay attention to the continuous supply of fine content.
After more than ten years of development, the long video platform industry has formed two basic industry characteristics. First, good news has initially formed the ecology of user payment; Second, the bad news is that membership growth has entered a bottleneck period. Based on these two basic characteristics, this paper analyzes the way to break the video platform.
First, continuously supply high-quality content and improve the bargaining power of the platform. The price increase of members is indeed a great weapon to solve the cost-profit inversion. The initial formation of user payment ecology and the improvement of knowledge payment consciousness have laid a certain foundation for members to raise prices. So, how to gradually improve the bargaining power of the platform on this basis? Nowadays, the reason why users become members is undoubtedly good content. Gong Yu, CEO of iQiyi, once pointed out: "We have observed that users' minds for watching various videos have gradually become clear. At the same time, according to our data and analysis, we believe that the fundamental reason why entertainment videos are squeezed by other forms is that their own high-quality content is still relatively scarce. "Well-made content can capture the audience, and Zhen _ Zhuan is one of the typical representatives. Zhen _ Biography was produced on 20 1 1, but its popularity has been enduring since then, and it has frequently topped the hot search list, even losing popularity to the new drama during the publicity period. Youku Video, which owns the copyright of Zhen Xuan Biography, has captured a large number of drama powder recharge members. Therefore, the continuous supply of high-quality content can maximize the bargaining power of the platform and let consumers pay for the rising membership fees.
Second, constantly enrich the IP incubation path of eating more fish. The business model of eating one more fish has been vividly reflected in Disney. Based on a series of animated images created by its films, Disney has launched many movies, animations and amusement parks to create explosive IP and maximize profits. For the long video platform, rational use of the business model of eating one more fish can enrich the profit model. Take The Untamed, a phenomenal online drama released in the summer of 20 18, for example, the producers are strategically arranging around the entire IP in The Untamed, and launching a series of products such as comics, novels, TV series, national music concerts, film and television OST. It is worth mentioning that The Untamed film and television OST has set a sales volume of 20 million on the whole platform, which has opened up new ideas of OST business model; The Untamed Guofeng Concert, just paid live, attracted more than 3.2 million people. It is one of the powerful ways to break the inversion of cost and profit by continuously tapping the deep flow, tapping the derivative value of drama series and optimizing the profit model.
Third, multi-mode development of new members. All the growth will not be endless, and the membership growth of the long video platform has indeed passed the period of rapid growth. But this is not the ceiling of video platform members, and consumers have a lot of room to pay for content with a cup of milk tea. The video platform should constantly innovate and develop new members in multiple modes. First of all, it can effectively increase the number of overseas registered members. Many domestic IPS will be broadcast overseas, such as the hit drama "You are my glory" of 202 1, which shows that the video platform has the foundation to attract overseas audiences. Secondly, we will continue to develop many younger fields and introduce various trend cultures. For example, Youku ace variety "This is Street Dance" introduced street dance elements, attracting a large number of loyal fans who pay attention to street dance.
Based on the development stage of the long video platform industry and various information disclosed in the first quarter financial report of iQiyi, it can be expected that each long video platform will make further actions in cost control and membership fee income. However, there is still a long way to go to really get out of the business dilemma and have more profit space. It is not enough for members to increase their prices.
Planning: New Media Content Center of Deep Space Network
Contributor: kapok
Audit: Huang,
Typesetting: making a fortune
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