Are you still willing to pay after the price increase of video members?

People walk in the arena, how can they not chase drama.

Variety shows, TV series, and movies are undoubtedly one of the most common scenes of contemporary Internet surfing.

However, compared to ten years ago, the way people chase dramas has changed a lot. The rise of iQiyi, Youku, Tencent Video and other platforms have provided more convenient and high-quality on-demand methods for everyone, and at the same time promoted the legalization of video resources.

But when the word genuine is mentioned, it will inevitably remind people of another word-charge.

Most of the content of the video platform, you need to pay to open a VIP to watch. Although some videos say "free", they actually need to watch ads for as little as 15 seconds or as long as two minutes. This is actually another form of payment.

But this is also reasonable. The film party invests in production and the platform costs money to operate, so as consumers, we must not always think about prostitution.

Statistics show that in 2018, the number of paying users of online video in China has reached 347 million, accounting for more than half of the total online video users. In some developed markets, this ratio will be even higher.

Even so, the video platform still feels that it has not made enough money, and everyone has the idea of raising prices.

According to the information officially released by iQiyi, it adjusted the subscription fee for the gold VIP membership service on November 13.

After the adjustment, the monthly subscription fee is 19 yuan, the monthly card is 25 yuan, the quarterly card is 58 yuan, the quarterly card is 68 yuan, the consecutive year is 218 yuan (USD $31) , and the annual card is 248 yuan (USD $35) ; the student's continuous monthly subscription is 12 yuan, and the student annual card is 123 yuan (USD $18) .

Simply put, the price has increased. Prior to this, iQiyi's continuous monthly subscription price was 15 yuan, and the monthly card was 19.8 yuan (USD $3) , an increase of about 26%.

Tencent, another giant in the domestic video industry, also stated at a recent performance meeting that the current video subscription price is low, and it hopes to have the opportunity to adjust in the future.

At present, the price of Tencent Video's continuous monthly subscription is still 15 yuan, but the price increase should not run away. It is just a matter of time.

Looking overseas, Netflix has also recently announced a price adjustment policy, with the standard package and premium package being adjusted up to $13.99 and $17.99 per month respectively. Prior to this, the two packages were priced at $12.99 and $15.99 respectively.

Although users' willingness to pay is not low, price increases are always a sensitive topic at any time and in any industry. This time iQiyi's approach is also inevitable from netizens' complaints.

On Weibo-related topics, many netizens started voting, and most users indicated that they would not continue to subscribe to members after the price increase.

(The poll with the largest number of participants on Weibo)

The price increase will reduce the user's willingness to pay to a certain extent. I believe everyone understands this problem, and the decision-makers of iQiyi must also know it. So iqiyi insists on doing this, there are always reasons behind it.

The video payment model has been in the country for nine years, and mainstream platforms including iQiyi have not raised prices before. Think about it, can pork nine years ago be the same price as it is now?

Compared with the international market, the subscription price of domestic mainstream video platforms is not even comparable to Thailand, Vietnam and other markets, only one-fifth of the United States. Although the consumption levels of various markets are different and cannot be directly compared, this more or less reflects that domestic payment costs are indeed not high.

Let us focus on the video platform.

With the rapid development of the Internet today, video has become the main medium for information dissemination, and most of the entries in the hot search list also come from major variety shows and film and television dramas.

Video is so popular, presumably the platform must be very profitable, right?

The fact is not so beautiful.

According to the "Fortune" China 500 list released this year, iQiyi ranked second in the loss list with a loss of 10.3 billion yuan, much worse than the tens of billions of subsidies every day.

On the other hand, Tencent Video’s annual operating loss was as high as RMB 3 billion.

In other words, it has been developing for almost ten years, and the major video platforms are still in the stage of burning money, which is obviously not conducive to long-term development.

In order to achieve profitability, raising subscription prices is indeed a feasible means, but not once and for all.

As we mentioned earlier, the most direct challenge to price increases is the loss of paying users. If we learn from the experience of Netflix, exclusive and high-quality content can play a significant role in enhancing user stickiness. This is also an important reason why the platform continues to increase prices, but the number of paying users increases.

The "Mist Theater" of the recent iQiyi fire can actually be seen as an important step in the content of iQiyi. When there are more and more such accounts, the increase in subscription fees will be more confident.

In addition to content, service is also an important factor that affects user decisions.

Presumably everyone will encounter some discomforts in the process of using the video platform. For example, the video platform has too many elements, and all functions are installed in it, which is not pure enough. Another example is that if you have subscribed to a member, you still have to watch "Member Exclusive Recommendation". The most controversial feature is the "advanced on-demand" function. The second payment has caused dissatisfaction among many consumers, and has even been brought to court. If the subscription fee increases, the corresponding service quality cannot be improved, and there is no way to grasp the users.

All in all, from the user's point of view, accepting price increases is not an easy task. But if the platform can have more high-quality content and less show operations, everyone will feel that a few dollars a month is actually worth it.

Perhaps after iQiyi takes the lead, other mainstream video platforms will also begin to calculate prices. Are you willing to pay for the price increase?