Iqiyi lost 2.9 billion in the first quarter, Gong Yu: it will further reduce the remuneration of actors

category:Finance
 Iqiyi lost 2.9 billion in the first quarter, Gong Yu: it will further reduce the remuneration of actors


Revenue from online advertising services was 1.5 billion yuan, or about US $217 million, down 27% from the same period last year, mainly due to the impact on Chinas economy during the outbreak.

Revenue from other businesses was 875.9 million yuan or US $123.7 million, down 9% year-on-year, mainly due to weak performance of some businesses.

Will summer TV play be stronger? Will the cost be reduced? Response from Gong Yu, CEO of iqiyi

Q1: has there been any change in user duration and retention rate of paid users in April and may?

Gong Yu: in April and may, the user duration slightly decreased, mainly due to the decline in net worth and retention rate.

Q2: due to the impact of the epidemic, summer holidays and vacations are affected, and summer travel may be reduced, so will variety shows and TV dramas be stronger this summer than in previous years?

Gong Yu: the college entrance examination was delayed for one month. According to the Convention, other ages in primary and secondary schools began to have holidays after the college entrance examination. But China has a habit of starting school on September 1, so the summer vacation time will be short this year, but we judge that we will reduce our travel this year, and we will spend more time at home, so we think that the demand of users will be stronger, but the time will be shorter. Q3: what is the trend of content cost and actor compensation? Will iqiyis next series be affected by this and reduce the cost of content? Gong Yu: in 2018, there was a limit of 50 million yuan for actors. Now all the dramas broadcast meet this standard. Before, there was a maximum of more than 150 million yuan. We believe that we will further reduce the remuneration of actors in the near future, and a large-scale impact may appear in next year or even the next year. One or two years ago, the main cost of our content was the purchase of copyright, and now the main content in the head is self-made, so now the main cost of content comes from the remuneration of actors rather than copyright. Source: first finance and economics net editor in charge: Yang bin_nf4368

Gong Yu: the college entrance examination was delayed for one month. According to the Convention, other ages in primary and secondary schools began to have holidays after the college entrance examination. But China has a habit of starting school on September 1, so the summer vacation time will be short this year, but we judge that we will reduce our travel this year, and we will spend more time at home, so we think that the demand of users will be stronger, but the time will be shorter.

Q3: what is the trend of content cost and actor compensation? Will iqiyis next series be affected by this and reduce the cost of content?

Gong Yu: in 2018, there was a limit of 50 million yuan for actors. Now all the dramas broadcast meet this standard. Before, there was a maximum of more than 150 million yuan. We believe that we will further reduce the remuneration of actors in the near future, and a large-scale impact may appear in next year or even the next year. One or two years ago, the main cost of our content was the purchase of copyright, and now the main content in the head is self-made, so now the main cost of content comes from the remuneration of actors rather than copyright.