Video website long-term war, will play, innovation and continue to “pop money” to win

Tiktok Kwai,

, and other short video platforms are rising, making the outside world doubt about the future of long videos. However, short videos are fleeting in people’s memory, and the topics and heat brought by long videos are enduring. Is there only competition between long video and short video? Is there only recession in the future of long video? Is there still a way out for good content? All the data can be found in the real chapter. According to the Q2 quarterly financial report released by iqiyi in 2020, its total revenue is 7.4 billion yuan, up 4% year on year. Among them, the revenue of member services was 4 billion yuan, with a year-on-year growth of 19%; the revenue of content distribution was 860.6 million yuan, with a year-on-year growth of 66%. As of June 30, 2020, iqiyi has 104.9 million subscribers. < / P > < p > from iqiyi’s financial report, the view that “all are watching short videos, who is watching aiyouteng” can be put off. The total number of members of iqiyi is still above 100 million, and the number of paying members of aiyouteng’s three platforms is more than 200 million. Considering that there are some non paying users, the total number of users of long video is more. For ayuton, the real war is both internal and external. In today’s Internet industry, members are everywhere, e-commerce, takeout, video, music, literature Members can be seen everywhere. For some users, the membership is not pleasant, and the membership means more than the regular expenditure; but for the deep users, the membership means high quality, high efficiency and good service, and the focus is not on the member payment, but on the better user experience. < p > < p > Gong Yu mentioned in the Q & a session of financial analysts that “in terms of business model, in fact, we still firmly believe in charging users, especially the monthly subscription fee.” Why is Gong Yu so firm that he wants to pay for members? < / P > < p > first of all, member payment has become the main profit point of video websites. Iqiyi has been promoting the payment strategy of video website members since 2015. At that time, the paying users in the video industry were used to be very poor, and the ratio of free users to paid users was even less than 100:1, and the piracy problem in the video industry was also prominent. No one can imagine the success of member payment in China. However, the popularity of online drama has opened the door of member payment in video website industry. < / P > < p > in Q3 of 2019, iqiyi’s member revenue accounted for more than 50% for the first time. In Q2 of 2020, member revenue accounted for 54% of iqiyi’s total revenue, and member business has become half of iqiyi’s. Iqiyi has driven the payment of members in China’s video website industry. The total number of paid members of aiyouteng’s whole network has exceeded 200 million. According to CNNIC’s 850 million user scale, the paid users in China’s video website industry account for 23.5%. < / P > < p > compared with international streaming media giants such as Netflix and Disney +, the proportion of paid users in China’s video website industry still has much room for improvement. However, considering that free thinking was once prevalent in the early stage of China’s Internet, there is a huge space for the future imagination of the membership business of video websites. < / P > < p > for the current aiyouteng, the membership business is no longer a question of whether to do it or not, but it must be done well. To do it well, the membership business will directly affect the financial performance of the video website. At the same time, the attention of users will be sucked away by the momentum of “No.1” in the industry. The era of video website making money by advertisers has completely passed. < / P > < p > secondly, the business of users will last for a long time. Advertising is a typical to B business and members are to C. Advertising business is more likely to be affected by external factors and fluctuate. According to the data of AIS Omnimedia advertising monitoring, the total amount of China’s advertising market in Q1 2020 shows a downward trend, with a year-on-year decrease of 25.5%. Affected by the epidemic related factors, advertisers are more cautious in advertising expenditure. < / P > < p > the customer group that member business should face is users. It should not only attract users to change from free users to paid users, but also improve the paid user experience, so that users feel “value for money” and can’t suffer losses or be cheated. User payment is mainly driven by two factors, one is content, the other is user experience, such as,,,, etc. when users think the content is good, their willingness to pay will be higher. The user experience mainly includes advertising, high-quality content, exclusive content, etc. < / P > < p > the membership business is really important, but the membership business is not immutable. The rapid development of video membership has been more than five years. The industry and users are changing, so the membership business naturally needs to change. In the Q & A of financial report analysts, Yang Xianghua, member of iqiyi and President of overseas business group, mentioned that Star Diamond members were launched on May 23, and the time to the end of the second quarter was not long. From the perspective of quantity, the proportion of Star Diamond members is still very small. The launch of Star Diamond members and advance on demand is to provide users with different choices and different consumers have different views. < / P > < p > compared with iqiyi gold VIP members, Star Diamond members can not only watch iqiyi’s advanced VOD series and Star Diamond cinema movies for free, but also enjoy the rights and interests of multiple members including Kiwi Star Diamond members, fun members, literature members, sports public members and VR members. < / P > < p > when purchasing members, some users will find that they have already bought members. Why should they buy Sports members, literature members and VR members? The launch of Star Diamond members meets the needs of these users. In the long run, the total number of iqiyi Star Diamond members will be lower than that of golden VIP users, but the ARPU of Star Diamond members is higher. For users, Star Diamond members are more convenient. As for whether to buy or not, users are free to buy or not. According to data from CNNIC, as of March 2020, the number of online video users in China has reached 850 million, including 773 million short video users, accounting for 85.6% of the total Internet users. From this point of view, although short video has a fierce momentum in China, the user base of long video is still higher than that of short video. The real impact of short video is consumption time. Long videos are more based on IP, while short videos are more based on algorithm recommendation. The longer users use them, the more accurate the content recommended by the platform will be. In this way, users are easy to indulge in it without knowing it, and their consumption time will increase unconsciously. After users’ idle time is consumed, they may not have much time to watch long videos. < / P > < p > first, the intersection of long video and short video lies in the video content of the whole Internet. Knowledge, music, popular science and other content can be short video or long video. There is no conflict between the two. Long video websites may also become shorter, and short videos can become longer. Tiktok,

second, when users are on Iqiyi and Kwai, the users will have different purposes and needs. If you watch variety shows, movies, TV shows, users will give priority to Edo. < / P > < p > Third, long video content has a more “social effect”. For example, in scenes such as friends’ parties and family chats, users are likely to get together to chat about a popular variety show, TV series or movie, rather than a short video content. < / P > < p > the advantage and core of long video is whether there is content that can ignite eyeballs and topics. One of the driving forces of user payment is content, and the content also directly affects the reputation of users on a video website. When users purchase members of a video website, it is likely to judge which website member is more cost-effective. Therefore, in addition to the current popular content, whether the video website can frequently make money and whether the content is complete has become the main factor for users to judge. < / P > < p > therefore, just relying on the popular content for a short time can certainly become a short-term “good heart” of users. When it comes to competing with each other, it will test the ability of video websites to continuously make money. The annual fee is cheaper than the monthly fee members, and the “blockbuster maker” is the permanent “good heart” of users. In Q2, iqiyi has successively launched high-quality dramas such as,,,, and so on. Suspense short series has become a hit all over the network. In terms of variety, it has become one of the most popular variety shows in the first half of the year. In addition, there are also variety shows such as, which have made great achievements. < p > < p > after the end of Q2, iqiyi also has popular variety shows such as,, and, as well as film and television content. On July 24, iqiyi also launched a fantasy action adventure movie starring Liu Xianhua, He Rundong, Lin Chenhan, etc. < / P > < p > the key point for users to purchase an annual membership of a video website is whether the website has continuous content to see, and “continuous” pop up is the internal strength of the video website. < p > < p > in recent years, the content cost of video websites is getting higher and higher, and each platform is adding more homemade dramas, and has made great achievements. In the long run, whether video websites can come up with a set of content strategies suitable for themselves will be a watershed in competition. They should not only cooperate with the upstream of the film and television industry chain, have the copyright of popular content, let the upstream producers and artists make money, but also have high-quality self-control ability to let the platform make its own money. < / P > < p > just like iqiyi, it not only has this kind of “Magnolia” award winning film and television content, but also has such self-made content. According to Gong Yu, iqiyi has more than 40 internal studios. These studios can not only produce content, but also have a complete set of business marketing, publicity and operation, post production, production and mode research and development, music copyright, offline activities, and artist agency, so that artists and studios can benefit. < / P > < p > it shows that in the first half of the year, 37 online films with a total box office of RMB 10 million had been sold, and iqiyi had 23 seats, accounting for more than 60%. < / P > < p > high quality content not only becomes the core competitiveness of the platform, but also directly brings distribution revenue to the platform. Iqiyi’s Q2 financial report showed that iqiyi’s content distribution revenue was 860.6 million yuan, a year-on-year increase of 66%. From this point of view, video websites can not only rely on their own content, but also make money by distributing high-quality content. < / P > < p > content distribution brings both domestic and international markets. Iqiyi’s,, and other contents have been distributed to many countries and regions such as North America, Southeast Asia, Japan and South Korea. Up to now, iqiyi has released more than 100 projects and more than 3000 sets of overseas films, and more than 200 sets of new films and film libraries have been released overseas, covering many countries and regions around the world. Iqiyi has been shortlisted in China’s top 500 for three consecutive years. It seems that iqiyi still has a real level. < / P > < p > looking at the competition in the online video industry, it is never a short-term win-win situation. Once Youku and Tudou were in the top position, and then LETV and Fengfeng audio and video were in a fierce situation, and finally the “tripartite confrontation” of aiyouteng. The impact of short video on long video is the same. At present, short video has a fierce momentum, but the value and user demand of long video will not be replaced. < / P > < p > the battle of long video is an endless battle. The left-hand members compete with the internal and constantly innovate and break through; the right-hand members compete with the outside world to produce more and more popular products. Some people like “fast food”, while others like “boutique”. They compete with time to see who can win. Iqoo5 series debut strength interpretation of “120 super full mark flagship”