Future fee content may occupy half of the video site

On the line for 5 minutes, 24.605 million clicks. The tomb of the super network drama tomb on June 12 gave the market a shotgun. After 22 hours on the line, the tomb notes were imported to break the 100 million flow for iQiyi. However, for iQIYI, what really cares about is the differentiated charging model of Tomb Raider notes, which increases the VIP membership growth by 100%.

At the Shanghai International Film Festival kicked off this week, Internet viewing should not be the subject of reluctance. More and more long titles have caused video sites and viewers to face dilemmas. Iqiyi, LeTV, Xiaomi and other companies have stated that the era of charging for users has come.

Ad length bottleneck

"Advertising time is too long, even with an insert! I have no power to tell." Whether it is tomb notes, or another popular domestic drama that was also adapted from online novels, its long advertising time has allowed netizens. Some are "tolerant". According to the statistics of the IT Times reporter, if you want to watch thousands of free videos on your video site, the shortest commercial time is 60 seconds, and more is 75 seconds. This does not include the 5 seconds of commercial time in the middle. In fact, for the hit series, over 60 seconds of advertising time has become the norm.

Advertising or fee? This is a long-standing contradiction in China's video website industry. This contradiction has become increasingly apparent as advertising cakes have become more and more inclined toward the Internet. According to iResearch's 2015 first-quarter data, ad placement for online video grew by 45.7%. For Internet models that pursue the user experience paradigm, longer and longer advertisements will directly reduce the user experience, which makes video websites have to find new sources of income.

On the issue of fees, various video sites have been slowly testing the bottom line of Internet users. In 2011, iQiyi began to launch a membership system. At that time, the monthly membership fee was 9.8 yuan. In the following years, however, Gongyi, the founder of iQiyi, had no intention of answering a question. “How much revenue does your paid membership bring?” because it has never exceeded 5% of total revenue. On June 16th, Gong Yu finally spoke up: 5.017 million paid members, a year-on-year growth rate of 765%. This is indeed a surprising figure. In a previous forum, many industry analysts speculated that the data is up to 2 million.

In this year's Q1 earnings report, Youtu did not disclose the number of paying users, but mentioned that user revenues from member services, mobile game intermodal, and online interactive entertainment services were RMB 120.8 million, an increase of 706% from the same period in FY2014. .

Membership prices are also rising. At present, the prices of iQIYI and LeTV are at the top of the list at 198 yuan/year, followed by Unicom and Tencent at 169 yuan and 150 yuan respectively. However, a group of BigData-Research mobile app user behavior monitoring system data shows that iQiyi’s active users reached 217,208,500 in April this year, ranking first, that is, paying members only account for 2.3% of active users. The market has great potential.


“I looked forward to seeing the embroidered spring knife some time ago. I bought one month's membership. But one month later, I didn’t renew my membership.” Many netizens said, “The member who bought this video has encountered the situation often encountered. Yes, the movie I wanted to watch was bought off by another video site, so I would buy it later.” Some netizens are even more straightforward. “Now the video site is not strong enough for me to pay an annual fee. ."

According to the investigation results of the 2014 Willingness to Pay for Online Cinema Films Survey conducted by the Analysys Think Tank in March 2015, the 1905 movie network showed that only 26% of the audience accepted the price range of 1-3 yuan to watch a movie. More than 40% of viewers choose to "do not purchase as long as they pay."

What makes netizens pay for what content will always test the "money bag" of video sites.

On June 18th, the reporter randomly browsed several video websites. From the experience point of view, films that can be enjoyed by iQIYI members include new films such as orphans and aristocrats and robbers. LeTV was on the line and wondered why the left ear was silent (Movie Version) In addition to the above movies, Ultune has also appeared on the lineup of Hollywood blockbusters in March this year.

"The experience is good and the content is good. Everyone naturally pays for the money. Why does it cost $400 to get an opera in Venice? The reason is that the content is good." Zhang Zhao, the CEO of LeTV, said recently.

In order to obtain the best content, each video site does not invest in copyright. According to UTU's first quarter financial report for fiscal year 2015, expenditures on content amounted to RMB 669 million (US$ 107.9 million), accounting for 59% of net revenue, compared with 46% in the same period of FY2014, citing new business support The development has expanded the video content library. Although iQiyi did not disclose financial data, Gong Yu said that the annual expenditure for the purchase of copyright also amounted to several hundred million yuan.

Future charges may occupy half of the country

This week, Alibaba announced that it would enter the video payment market and will launch its TBO (Tmall Box Office), a paid video service. Its model will be closer to Netflix, a US online movie rental provider, and 90% of its TBO content will be paid viewing. Chen Wei, vice president of content operations and investment of Xiaomi, told the IT Times reporter that Xiaomi will also seriously try new charging models, and he firmly believes that membership fees must be the main profit-making method in the future.

As the giants continue to join in, unlike previously paying attention to the issue of payment, at this Shanghai Film Festival, various video sites have publicly expressed their preference for the payment model, and there is a market for shooting through crowdfunding and self-control. The film and television works thus charge users, and this will be a model jointly promoted by domestic video sites for a long time this year and in the future.

The Tomb Raider notes produced by iQiyi have confirmed the feasibility of this model to some extent.

After July 3, members can watch all episodes for free, while non-members can only watch one episode a week. Iqiyi hopes to use the Super IP TV drama and fan effect to drive the number of members.

Youku potatoes try another way - from user-related brand marketing. Liu Dele, president of Youku Tudou Group, once said in the reading of the financial report that, in terms of investment return, the return on investment of professional partners' production content and user-created content is the highest, followed by original content, and finally, the return on investment of film and television dramas.

Since last year, Youku Tudou has been experimenting with different forms of marketing, including micro-short-chip crowdfunding with branded implants, and the offline event "Potato Imaging Season." The reporter learned from the potatoes that similar large-scale offline interactive experience activities will become new growth points. It is reported that from this year onwards, the potato image season has changed from previous years to several times a year. The revenue model is even more diversified. This year, potatoes will try to sell tickets, and the ticket price will be 150 yuan. In addition, this year has introduced the position of chief sponsor, and it has been confirmed that it will receive tens of millions of brand sponsorship.

At the same time, in the event, a fashion brand show will be introduced to build more show brands for more fashion brands with the audience of the potato itself, which will bring at least 100 million yuan in income.

According to the potato, once the similar offline-interactive model has matured, new revenue channels have been formed, and forward revenues such as charging to members have been expected to decline.

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