Chinanews client, Beijing, March 24th (Reporter Wu Tao) Tencent Video lost money, iQiyi lost money, and Youku lost money. Most online video companies are still struggling below the profit line.

Under this circumstance, many online video platforms have begun to explore new profit models. Following "on-demand" and "VVIP", methods such as selling "perspectives" for viewing movies and selling multiple members have also come.

　　There are also some platforms that "simple and rude" directly increase the price of VIP members, causing netizens to spit: See what you can't do, the price increase is the first.

Data map.

Screenshot

Online video is generally profitable and offline struggles

　　Recently, in the intensive release of online video companies' financial reports, most of them have continued to lose money.

IQiyi’s financial report shows a net loss of 7 billion yuan in fiscal 2020, and a net loss of 10.3 billion yuan in the same period in 2019.

　　Although Alibaba did not announce the specific loss data of Youku, its results for the quarter ended December 31, 2020 showed that the adjusted EBITA loss of the digital media and entertainment segment narrowed year-on-year in this quarter.

　　After the release of Sohu’s 2020 earnings report, Sohu CEO Zhang Chaoyang said in an interview with the media, “Sohu Video’s losses have been kept below the warning line, and the loss reduction effect has been obvious, and it continues to follow the'small but beautiful' route.”

　　It can be said that the continuous loss of online video platforms has made many listed companies reluctant to talk about it-they are not listed or mentioned in the financial report.

　　Tencent has not announced the 2020 full-year performance of Tencent Video, but its video business's full-year operating loss in 2019 has been reduced to less than 3 billion yuan.

Image source: Screenshot of Tencent Holdings' 2020 interim results announcement.

　　The loss of online video platforms is not terrible. The frightening thing is that the industry is still facing the dilemma of slow growth in paying users but increased spending on paid content.

　　After the release of iQiyi’s 2020 financial report, iQiyi’s CFO Wang Xiaodong said that these two factors, iQiyi’s self-made films and the expansion of overseas markets, may drive up the cost of content in the future.

According to incomplete statistics, iQiyi has accumulated losses of about 30 billion yuan.

　　In addition, Tencent's 2020 interim performance report shows that the cost of revenue of value-added services business in the second quarter of 2020 increased by 18% to 30.1 billion yuan, including the increase in content costs (including Huya) for live broadcast, games and video streaming services.

Exploring new profit models, do users recognize it?

　　The reporter noticed that some new profit-making methods have emerged in the online video industry. In addition to the previously complained "on-demand" and "VVIP", there have also recently been new profit models such as selling "perspectives" and selling multiple members.

　　For example, online tickets for Migu's 14th Migu Hui Music Festival in 2020 can sell "Viewpoints".

2 yuan can unlock the basic "view", 18 yuan electronic ticket can see four "views", there are 88 yuan package, and even 1888 yuan package ticket.

　　High-priced tickets come with more "perspectives" and other rights, and you can also choose your favorite star "perspectives."

Take the star Cai Xukun's "perspective" as an example. After the purchase, you can watch Cai Xukun's performance on stage at close range. The model is novel.

Netizen: Good guy, it's the first time I heard that you can still play like this.

Screenshot of Huawei's official website.

　　Other video platforms have started a multi-member business, buying a VIP member, you can watch the VIP member content of N online video sites.

For example, Huawei Video has launched multiple membership services, covering Huawei Video VIP members, Mango zone members, Youku zone members, and Tencent Video zone members.

　　Huawei Video also launched a super diamond package, users can enjoy Huawei Video + Kumiao + Mango TV + Aurora TV four video platform members exclusive benefits and privileges.

　　However, the reporter learned that the content involved in the multiple membership rights of Huawei Video is only the video content provided by the corresponding section of Tencent (Mango/Youku).

The content may not be fully equivalent to the rights of VIP members such as Tencent and Youku.

　　In addition, such multiple members have pros and cons.

Take Huawei’s above-mentioned super diamond package as an example. It costs 187 yuan per month (often discounted to 98 yuan), but now some online video site members, one year VIP membership is only about 200 yuan; the advantage is that you can watch the content of multiple members at the same time. Go and buy one by one.

Reduced promotions, and online video prices have increased significantly

　　Some online video companies have adopted "simple and rude" methods to make profits, directly increasing the price of VIP members.

Notice of price increase for iQiyi VIP members.

Screenshot

　　IQiyi is the first to increase the price of VIP members in the fourth quarter of 2020.

After the price increase, iQiyi CEO Gong Yu once said, "The price has not changed in 9 years."

　　On November 12, 2020, at Tencent’s third-quarter earnings conference call, some Tencent executives also stated that the current price of Tencent’s video membership subscription service is low and will be adjusted in the future.

　　However, Tencent Video, Youku, Sohu Video and other companies all told Chinanews.com reporters that "there has been no price increase recently."

　　Sohu CEO Zhang Chaoyang once said in an interview with a reporter from Chinanews.com that Sohu Video does not have a VIP member price increase plan and maintains a parity.

He believes that "Sohu Video involves placement of advertising, growing revenue from online dramas, live video delivery and live variety shows, etc. This road can still work."

　　The reporter noticed that online video companies are also working hard to reduce losses, such as tightening the situation of multiple people using one VIP member.

Many netizens reported: “iqiyi and Tencent Video can now be used on up to two devices at the same time, and they are often squeezed out.”

　　In addition, companies have reduced sales promotion.

After the disclosure of iQiyi’s 2020 financial report, Gong Yu talked about the growth of members this year and the members’ ARPU (Average Revenue Per User) value, saying, “First, the ARPU value this year will not increase by a large proportion; second, we will reduce it. Some promotions."

　　Have you bought a video membership?

how much is it?

(Finish)