IQiyi Gongyu: Start the "Calm Growth" strategy to increase the content and market investment appropriately

On September 15th, 2022 iQiyi IJoy Yuexiang Conference was held in Hangzhou. At the meeting, Gong Yu, the founder and CEO of iQiyi, not only shared the iQiyi media platform matrix, but also introduced iQiyi's development strategy, as well as platform development plans such as the next generation of the platform.

At present, the film and television industry under the tone of "reduction of cost reduction and efficiency" is facing a stricter test of survival in the short term. From the perspective of long -term development, only film and television practitioners further establish an industrial production system and produce high -quality content can it be adjusted in cyclical adjustments. Stand up the heels in the middle and plan the future. As an important part of the development of the film and television industry, the healthy and sustainable development of the Chinese video platform will promote the direction of China's film and television industrialization and the quality of content.

From "open source throttling" to "calm growth", iQiyi, who entered the new channel, will focus on the core business, increase the content and market investment appropriately, and use high -quality content and technological innovation as a link. At the same time, the next -generation business layout of business, casual business, AR/VR, Web3, etc., provides users with more high -quality audiovisual experiences, and strives to achieve the healthy and win -win situation of platforms and partners, helping the healthy development of the industry.

The following is the lecture record:

Hello everyone, very happy to get together. I share more about iQiyi's business and strategic thinking.

IQiyi Media Platform Matrix

——The clear and mature "Apple Garden"

Ten years ago, I said that iQiyi was a "apple tree". A few years later, I said that iQiyi was a "Apple Garden". Iqiyi "Apple Garden" has not been said for three or four years, but it is not that the apple tree is gone. In fact, it is very mature and very clear.

The main media brand of iQiyi is essentially platform and content. The media platform plays a role in carrying and distributing content. Due to the popularization of the market, there are several sub -brands under the main brand of iQiyi.

First, Strange Fruit TV. Iqiyi has maintained a high proportion of Internet TV brands such as Xiaomi, Hisense, Skyworth, and many TV starts by default. There is an application called "Kiwi Fruit" to open any Internet TV app store. The content and R & D of this product are doing iQiyi. Cloud data, algorithms, and clients closely fit together, and the user experience is very good. Recently, we are pushing a high -standard TV format "Frame Film MAX". The color saturation and surround sound are all available. The standards are very high. We hope to pass high -quality content and technical certification to make markets pursuing high -quality development. The development of the function or audiovisual experience on the Internet TV terminal has a lot of space in the future.

Second, iQiyi Speed ​​Edition. In 2011, we launched the first monthly membership model in the industry. In 2015, "Tomb Robbery Notes" was the first member episode to prove that good content can be charged. This is a very exciting news in the industry. Later, the membership business has been developing at a high speed. Last quarter's financial report showed that 60%of iQiyi's income came from membership subscription. The side effects of the charging member model are that some users may lose. They have time to watch advertisements but are unwilling to pay, or have limited economic conditions and cannot pay for a long time. We discovered this problem last year and found a solution -launching iQiyi Speed ​​Edition and Basic Member. If you pay much money every year, you can see the payment content and the advertising content.

Third, iQiyi International Edition. We have been in the international version for almost two years. There are 12 languages ​​now, covering 191 countries and regions, and there are about tens of millions of users a month.

Above the main brand, there are novels, comics, Chibabu, Takapa, casual, iQiyi Games (Tiantian Interactive) and other iQiyi media service matrix. IQiyi novels and iQiyi comics are two indispensable two sub -brands in iQiyi ecosystems, creating a lot of IP for us. At the same time, some of our contents are adapted into novels and comics, and they are also distributed on it. There are also young people who watch animation and comics. Chibabu mainly serves preschool children, and the content has been carefully selected. In addition, Tianxiang Interactive is the company acquired by iQiyi in 2018. It mainly deploys the game field, and 80%of its business is in overseas markets.

IQiyi Development Strategy:

From "open source throttling" to "calm growth",

Increase content and market investment appropriately

The theme of iQiyi in the first half of the year was "open source throttling and turned losses into profit." When the market is good, the horse race is more important. But as the environment changes, we should quickly adjust according to the actual situation. At the end of the fourth quarter of last year, we determined the strategy of "open source throttling and turned losses into profit." In the first half of this year, the profit was over 200 million yuan, thanks to the help of partners and the historical accumulation of iQiyi.

This year's goal is not only the operating profit is positive, we also want to fight for higher numbers. The method is to reduce the low -efficiency business and some small -scale and not see the future, but the main "apple trees" of iQiyi should focus on cultivation. "Save money" is not a good business. For iQiyi, the current main business is members and advertisements. Member business continues to grow positively, while the overall trend of advertising business and industry is consistent, which is negative growth. The reasons for the negative growth of the advertising business are very complicated, but the core reason is that it is affected by the macroeconomic. In the second half of the year, we hope that the advertising business will start up.

Iqiyi's strategy in the second half of the year is "calm growth". We are not just pursuing "open source throttling", but also to grow. However, the current environment is not enough to support our high -speed growth. The method of response is "calm growth" and grasp the core business points. First, increase content investment. In the first half of the year, I felt a bit stressful test. The number of broadcasts was reduced, but we also knew where the bottom was. In the second half of the year and next year, we will increase some investment, and the content is richer, so that more audiences like our more diverse themes. On the other hand, increase market investment. Increase market investment in content, brands, and new users. The pressure test in the first half of the year gave us more data, which made us more confident to know how to do it in the second half of the year and next year. Iqiyi user classification:

Members and non -member needs and interests have their own preferences.

Quality life and positive life

Iqiyi users are mainly divided into two categories: one is member users, and the other is a non -member user. Member users are mainly watching the charging content through iQiyi APP, computer and web pages, and Qiqi TV. Non -members are mainly watching free content by carving apps, channels, and high -speed apps.

Differentiated demand and consumer preferences constitute the characteristics of members and non -member users: Member users are the pursuit of quality life. Their TGI is higher. The age distribution is concentrated between 19 and 30. Financial management, digital technology, real estate, decoration, online games, etc., are more concerned about enjoying all kinds of Internet services. Non -member users are active lives and lovers. They are mostly distributed under 19 years or over 40 years old, and they focus on regional distribution. In terms of interest preferences, non -member users pay more attention to pets, health and luxury goods, and their attitude towards life is very positive. In short, iQiyi members and non -members are a group of people who love life and positive.

The development of iQiyi business:

From traditional business to the next generation of business,

Scientific and technological innovation drive entertainment development

Content production, technology research and development, member business, advertising business, and "one fish eat more" business together constitute the traditional key business of iQiyi. The content production is fundamental, technological research and development is the driving force. Members and advertising business are the main sources of income. Under the business model of "one fish and eat more", other businesses support other businesses. At the same time, I also want to share the next generation of iQiyi:

Cloud theater. Movies are still the highest category of art pursuit of art in the field of vision. Film creation integrates feelings, professional capabilities and industrial development, and also integrates the artist's personal aesthetic judgment, so the cost gap between the film is huge. It may be 5 times, 10 times, 30 times, and 50 times the cost of one minute. It is important to support the ceiling that supports this market. If there is only a monthly service, a piece of cake is separated from the membership fee to the movie, then the ceiling is very low. Like the cinema, we should lift the ceiling higher. So we attach great importance to and optimize the "cloud theater" model of the movie. The first window of the good movie was broadcast on the Internet, and users paid for good movies. The interests of the platform and the producer are consistent, make good work and marketing, and make the market cake bigger. From 2011 to 2015, the membership model developed for four years, and we felt confident. The cloud theater has only been done for a year, and we have improved. We must also be patient to continue to cultivate this market.

Smart production. After more than 30 years of development in China, it has changed from hand -made workshop to one of the world's strongest manufacturing countries. Film and television also need advanced technology. In simple terms, there are three levels: the decision -making layer depends on the AI ​​of commercial intelligence as an investment return, commercial prediction, etc.; The middle layer collects the information to access all the devices and human -related data, so that the producer and management will master anytime, anywhere, anywhere, anywhere. Information, minimize various accidents; the bottom layer and tool -level production link, cameras, actors, and screens constitute a three -dimensional relationship, relying on virtual shooting by positioning. For example, the "Fox Demon Little Red Mother Moon Red Article" filmed in Hengdian these days is the first domestic business drama to apply XR virtual production. In the future, there may be more and more occasions on this technology.

overseas business. It is still continuing to explore, laid the foundation, and have not yet arrived when large -scale investment. But we have gradually found the feeling and law. In the future, we can get more returns.

Careful business. Another "home -cooked dish" ecology we established makes the content richer and the comprehensive cost is lower.

VR/AR: There are two major brands in China in the field of VR helmet, one is iQiyi adventure VR. In the field of AR, iQiyi has invested in a AR glasses company NREAL in the past few years, and has developed well recently. Its glasses products have achieved cooperation with China Mobile. The software and content in it are iQiyi, which constitutes a better ecosystem. It has begun to be released in China this month.

Web3.0: Based on Web1.0 (PC Internet) and Web2.0 (mobile Internet), China has gained good opportunities and development foundations. Web3.0 has been flourishing in the past two years. It is based on artificial intelligence, 5G, blockchain and other comprehensive technologies. Everyone is still exploring. We want to find a reasonable point and take the Web3.0 train to get benefits.

"Being a great entertainment company driven by scientific and technological innovation" is our vision. "Great" has two meanings: the first layer is large scale, high income, and many users; the second layer is to hope that we provide entertainment services to allow everyone to obtain positive benefits. Just like our content brand youth, sunshine, positive energy, upward, good, and not catering, leaving everyone more positive thinking.

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