Video platform members price trend, why do users spend this money?

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 Video platform members price trend, why do users spend this money?


As early as in the performance meeting in the third quarter of 2020, Tencent executives said: Chinas video subscription prices are rising. Under certain structures or scenarios, we hope to have the opportunity to adjust the prices of video subscription services.

Tencent video, which has given a shot in the arm to the market and users, finally announced a price increase half a year later.

In fact, at the end of last year, iqiyi took the lead and announced the adjustment of subscription fees for gold VIP member services, involving monthly, monthly, quarterly, annual and annual subscription fees. The constant 19.8 yuan for nine years has become 25 yuan.

Two of the four leading long video companies have announced price increases. As a user, are you willing to pay for the content?

Is the price of video platform not afraid of losing the market? Before the disguised price rise has angered the audience

As for the signs of price increase on the platform, we have to go back to 2019, when the fire of petition order came out of the circle. At the end of the broadcast, the independent broadcaster Tencent video announced that VIP members can watch the last six episodes in advance at the price of 6 yuan for a single episode, or they can spend 30 yuan directly to the finale. According to statistics afterwards, the number of pre paid VOD in the grand finale of Chen Qing Ling has reached 5.2 million, and the revenue of the platform from VOD is estimated to be more than 100 million yuan. Subsequently, iqiyi also launched the pay ahead of demand mode, Youku and mango TV have started broadcasting new dramas successively since March 2020, adopting the pay ahead of demand mode, so far all the main video platforms have entered the game.

Yang Xianghua, a member of iqiyi and President of overseas business group, strongly supports the mode of advance on demand, saying that the launch of Star Diamond and advance on demand is to give consumers different choices. It is wrong that Chinese consumers are unwilling to pay. I hope we can explore more different ways to collect money from users in the future.

At that time, there was always a controversy about the paid on-demand drama watching mode. The fuse that completely angered the audience was at the end of 2019. Iqiyi and Tencent video jointly launched the on-demand of more than 6 episodes per 50 yuan update day of qingniannian, which was strongly opposed by users.

Member users generally think that they have been used by the video platform. The original agreement for purchasing VIP members did not specify the rules for setting VVIP in addition to VIP. Under the surge of public opinion, Tencent video and iqiyi canceled the on-demand mode of watch more than 6 episodes per 50 yuan update day, and changed it to the on-demand right of 3 yuan per episode for members on the basis of watching 6 episodes in advance.

Some members took iqiyi to the Internet court. On June 2, 2020, the Beijing Internet court pronounced a judgment on the case of member v. iqiyis qingniannian advanced VOD. According to the judgment, the advance VOD behavior constitutes a violation of the law and breach of contract. The defendant shall provide the plaintiff with the original VIP membership rights and interests for 15 consecutive days, compensate the plaintiff for the loss of notarization fee of 1500 yuan, and reject the plaintiffs other claims. Six months after iqiyis appeal, the court still upheld the original judgment and stood on the side of users.

The member recalled, last year today, iqiyi changed the membership agreement and added the advance on demand clause, which planted the legal seeds for the advance on demand of the hot drama after qingniannian.

Later, because I didnt want to compromise on payment, I sued iqiyi for advance demand. After being tried by Beijing Internet court, on June 2, 2019, the court ruled that iqiyi lost the lawsuit, and the advance demand clause didnt take effect for me. Wu Shengwei said that in the process of litigation, iqiyi did offer some good mediation solutions, but finally chose the original intention.

Netease Entertainment has conducted a small-scale research on the members and non resident members of the video platform. Among the original members, as many as 73.1% of the users said that they would continue to use (or continue to buy) their members. They said that the price increase was acceptable and there was no big conflict

Its not that there is any complex or loyalty to any platform. Its just that Im used to following the drama or brushing the variety show every day. Now I cant turn on the TV on time in my work and life. When I go to any station to watch the drama, I have a mobile phone nearby. I can watch it when I think about it. I can also turn it on and off as soon as I want.

Now some online dramas are not inferior to TV. They have to pay for cable TV every year to watch TV. Its acceptable to pay a fee for not watching advertisements. after opening members, the whole family and even friends around can use it. In fact, the cost is very low and the effect is good.

You can see a lot of on-demand content in advance, and its also a way to support your favorite idol. For this reason, what else do you think?

Compared with the member group, non resident members (who do not often use a video platform, only offer the shortest service for special dramas or idols, or are not willing to buy members) are more resistant to price increases

I didnt buy much at all, so I dont think much about the price increase. When there are no members, a video has to endure countless advertisements, and I dont like these video platforms. I have a natural aversion to the price increase, so I wont buy it in the future.

There are so many platforms now, and they will only open members for the drama they want to watch for one month, so for me, price increase is to reduce the cost performance ratio, which is not comfortable.

It can be seen that for the price increase of video platform members, those who watch are still willing to watch, and those who do not want to watch are even more reluctant to watch. The ceiling of member growth is beginning to show. How can long video platform break the circle in this situation?

Is price increase a helpless move or a general trend? Internal staff have something to say

According to the analysis of experts, Tencents price increase after the Qingming holiday announced on April 10 has a weeks buffer time, which makes the original members have the situation of adding, and also makes the users who hesitated to recharge make up their minds. There may be a tide of member recharge in these seven days, and most users may choose to recharge members in the first quarter or one year.

Tencent groups share price surged nearly 7.5% after the Qingming holiday, sweeping away the previous downturn.

Netease Entertainment interviewed Zhang, a front-line staff member in charge of website operation, who works for the mainstream video platform Aiyou tengmang. He was not worried about whether the video platform after the price rise can withstand the test of the market: compared with foreign payment, in fact, Chinas payment rate is not high. Take the current mainstream overseas streaming media as an example, Netflixs pricing in the United States is $13.99 per month. In Thailand, Netflix charges 280 baht a month, or $9.144. And before iqiyi and Tencents video prices both rose, members of domestic long video platforms paid less than 20 yuan a month, and they often had discount activities.

For the price increase, Zhang feels that the range is not very high. Although we havent developed the concept of long-term payment for content, we are more and more willing to pay in the short term. Zhang said that the platform will gradually cultivate the payment habits of members, and promote their retention through hierarchical and strategic methods.

High quality content has been produced all the time, but the cost of content independent production and copyright procurement is not low. The current way of video website revenue can only be achieved through member payment and advertising revenue. Based on the 123 million video payment service members Tencent currently has, after this adjustment, Tencent may increase revenue by several hundred million yuan, which most directly alleviates the pressure of the companys current operation. At present, aiyoutengs three companies have been deeply engaged in the market for so many years, but they have not made any profit. They have been consuming the content all the time. If users are willing to pay for good content, then we can continue to produce good content.

During the epidemic last year, Zhang participated in the whole planning and publicity cycle of popular dramas such as settle down and just thirty. For high-quality content, he is confident that he can accept the test of the market: we will set a level for the dramas to be broadcast in the early stage. For popular dramas such as settle down , we will discuss the content of each episode, hoping to arouse everyones attention It may also extend the revelation of social phenomena, so that we can understand the deeper meaning that the director and actors want to express outside the plot. Such content will make users feel that it is worth paying for. Of course, those who dont want to pay can also wait for free episodes to be released. There are many ways, just providing more choices to meet different people.

Compared with Kwai tiktok, Zhang is more concerned about how to break through long videos. Now, we are increasingly spending more on short videos (jitter, fast hands, etc.). For long video, in addition to popular dramas, individual users will have expectations. Most dramas are slowly noticed after they are online. Compared with the fast, hard and accurate of short video, long video is currently in a stagnant growth state, unable to find a breakthrough, and even close to short video, trying to pull back or obtain users from short video. Modern peoples time is becoming more and more fragmented, and their tastes are ever-changing. We content producers cant preset the standard of popular products. We have to keep trying, which needs the tolerance and support of users.

Compared with Kwai tiktok, Zhang is more concerned about how to break through long videos. Now, we are increasingly spending more on short videos (jitter, fast hands, etc.). For long video, in addition to popular dramas, individual users will have expectations. Most dramas are slowly noticed after they are online. Compared with the fast, hard and accurate of short video, long video is currently in a stagnant growth state, unable to find a breakthrough, and even close to short video, trying to pull back or obtain users from short video.

Modern peoples time is becoming more and more fragmented, and their tastes are ever-changing. We content producers cant preset the standard of popular products. We have to keep trying, which needs the tolerance and support of users.