iQIYI in 2022: To take root in long videos, and win-win cooperation with short video platforms

time:2022-11-27 03:54:57 source:scripttoolbox.com author:Chassis
iQIYI in 2022: To take root in long videos, and win-win cooperation with short video platforms

For domestic and foreign video platforms, the past two years have been closely linked to the keyword "downlink". Behind the successive price hikes of members of the three major domestic video platforms are the operating losses and financial pressures that are increasing every year; the declining monthly active user scale has put several major Aiyouteng manufacturers under increasing pressure; Even Netflix, which is regarded as a positive example by industry insiders, has also encountered a surge in user acquisition costs and a sharp drop in revenue after price increases. It is not difficult to see that the current online video industry has bid farewell to the stage of staking the market with high investment in exchange for market share, and ushered in the second half of improving quality and reducing volume and pursuing breakeven. On September 15th, nearly a year after announcing "open source and reduce expenditure", iQIYI officially held the 2022 iJOY Conference and Annual Marketing Conference today. iQIYI executives shared with us the media of iQIYI. Platform matrix composition, insights into industry development trends, company development strategies and future content strategies.

Remarkable results have been achieved in increasing revenue and reducing expenditure, and "calm growth" will become the norm

The founder and current CEO of iQIYI was the first to share Gong Yu. He said that in the first half of this year, iQIYI efficiently implemented the strategy of "opening sources and reducing expenditure", making every effort to increase the revenue of important businesses such as membership and advertising, and successfully turning losses into profits; in the second half of the year, iQIYI launched the strategy of "calm growth" and appropriately increased content and Market investment, and continue to make efforts in next-generation businesses such as cloud cinema, intelligent production, overseas business, instant business, AR/VR, and Web3. According to the second quarter financial report released by iQiyi recently, Gong Yu's remarks are true. According to the financial report, iQIYI’s total revenue in the second quarter of this year was 6.7 billion yuan, of which membership service revenue was 4.3 billion yuan, a year-on-year increase of 7%. Operating profit based on non-GAAP financial measures (non-GAAP) was RMB 344 million, an increase of 5% sequentially. This is also iQIYI's second consecutive quarter of operating profit following its first profit in the first quarter. (Source: iQIYI) The key to turning losses into profits lies in reducing operating costs and improving platform construction. In terms of cost, iQIYI chose to reduce operating costs by reducing low-efficiency businesses and some small-scale businesses with no future. Gong Yu said that last year, iQiyi laid off 20% of its employees, and the divested businesses included relatively marginal areas such as e-commerce, hardware and research institutes. Of course, the cost of content also dropped by 24% year-on-year to 3.9 billion yuan. It is not difficult to find that in order to compete for market share, video platforms generally expand many marginal businesses that are not strongly related to the main business. Even in subdivided tracks, they will also invest a certain amount of capital in order to stabilize their market position. But as Gong Yu said, when the industry winter is approaching, the video platform will eventually find that only the main business can obtain the desired income, and the projects with poor return on investment can be cut off to return to the original intention. (Source: iQIYI) While cutting costs, iQIYI's core media platform is still developing steadily. The four platforms of iQiyi, Kiwi TV, iQIYI Express Edition, and iQIYI International Edition cover various scenarios from mobile phones to TV, from paying users to free users. On this basis, iQIYI will increase content investment in the future, focus on head content, and make great strides towards next-generation businesses such as cloud cinema, smart production, and VR/AR.

Content "quality first", use good content to win back people's hearts

If Gong Yu is talking about love on a large scale The current situation of Qiyi's development, then the executives of iQiyi who will appear next will focus on "content". Wang Xiaohui, chief content officer of iQIYI and president of the Professional Content Business Group (PCG), introduced that in the first half of 2022, iQIYI released a total of 69 new episodes, a decrease of 20 compared to the same period last year. More premium content. In just half a year, iQIYI has produced three episodes that have exceeded 10,000 popularity, and only five works have achieved this achievement so far. (Photo source: iQIYI) To this end, Wang Xiaohui used "four stills" to summarize the current stable and positive environment for the long video industry, namely: people still, beliefs still, efforts still, and companionship still. Although the external economic situation is not optimistic, users are still full of confidence in the market, their enthusiasm for good content is still there, and iQIYI's belief in creating high-quality content is still there. At the event, iQIYI released 235 content lists, covering dramas, variety shows, movies, animation, games, sports and other fields. Among them, there are many film and television theaters that are deeply rooted in the genre, and variety shows with diverse and innovative content Programs and exciting sports programs provide users with a more diverse selection of high-quality content, infiltrating the spiritual life of the people. (Source: iQIYI) In addition, in July this year, iQIYI also reached a content licensing cooperation with Douyin. For long video content authorized by iQIYI, Douyin platform users can re-create it as interesting. short video. According to the official statement, this is a decision made by iQIYI after it decided to deepen the long-term video track, hoping to use each other's strengths to unlock new opportunities and expand its monetization capabilities. Not only that, iQIYI believes that with the blessing of high-quality content, they can use innovative IP panoramic ecological marketing to help major brands and high-quality content in-depth linkage, maximizing the release of marketing potential. With IP as the core, it opens up the fields of content, communication and consumption, helps advertisers and users establish multi-touch and multi-dimensional marketing solutions, reaches users in all directions, and enables each field to help brands achieve different marketing effectiveness . (Source: iQIYI) It is undeniable that due to various factors, the capital market environment in the first half of 2022 is not particularly good. The tax crisis and celebrity public opinion crisis in the film and television industry for many years has exploded wildly in the past six months, which has chilled many investors. The record-high global inflation rate and the recent downturn in the Internet industry have also made video platforms a living advertisement. Business took a big hit. iQIYI chose to hold the Joy Sharing Conference at this time. On the one hand, it hoped to show investors the results of its "open source and cost reduction". It is rumored that the founder Gong Yu used "The process is very challenging, but the result is exciting." "It is not easy to describe this performance; on the other hand, we hope to attract more brand manufacturers to participate in cooperation by playing the "card" in the second half of the year. Today's iQIYI has cut off some "flashy" content and abandoned the so-called "scale" burden. This can be understood as a "return to the heart" move, which is indeed worthy of praise. But whether they can continue to achieve profit growth in the future through the "cool growth" strategy, perhaps only the patience of users, the quality of the work and the time can tell us the answer.

(Responsible editor:Computer machine)

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