iQIYI's "Matryoshka Membership" has robbed the precious VIP members

In 2022, the development of long videos is becoming less and less satisfactory, and the relationship between long video platforms and members is becoming more and more unpredictable. What are the routines of long video platform members? Let's take a look at it together with this article.

There is a classic line from Princess Iron Fan in Stephen Chow's movie "A Chinese Odyssey: Cinderella": "When you used to watch the moon with me, you called me Little Sweetie! Now the new one is better than the old one, so call me Madam Niu!"

If this sentence is adapted, it is very appropriate for the current relationship between long video platforms and members: "When I was asked to become a member before, they called me a distinguished VIP user! Now that I have become a member, the threshold for membership rights is constantly raised."

In 2023, iQiyi became a hot topic on Weibo because of its changes to the screen projection rules, and Youku also caused public complaints because of its restrictions on member device logins.

Paying to become a VIP is not honorable at all, but instead makes you a victim and a punching bag. The netizens are really eye-opening about the deep tricks of the long video platform members.

1. iQiyi’s nesting doll-style harvesting of members

"The practice of charging for membership in a nesting doll-like manner to fleece consumers is unacceptable." This is what the Shanghai Consumer Council said when naming iQiyi.

The incident originated from iQiyi’s changes to the APP member screen casting system starting from January 11.

Many netizens reported that as a gold member, they can only choose the standard 480P quality when casting the screen. If they want to cast a higher definition picture, they have to upgrade to a platinum member. Before this, iQiyi gold members supported 4K definition video casting.

▲Image source: Boss News Weibo

Many iQiyi users are dissatisfied with the fact that as a gold member, they can only watch 480P images with mosaic-like quality when casting the screen. Under the hot search topic #iQiyi APP restricts screen casting#, many netizens accused iQiyi of "being too greedy" and said that they "will no longer renew their iQiyi membership" and "boycott iQiyi, starting with me."

▲Image source: Weibo user

In this regard, the Shanghai Consumer Protection Committee stood up to uphold justice, saying that "screen casting is a normal usage scenario for mobile users. Consumers pay for it, and it is their right to watch it on their mobile phones or on the screen. It is unreasonable for the platform to restrict consumers from screen casting within the APP, and it is even more unfair to charge extra fees in this way."

▲Image source: Weibo

The response from iQiyi customer service was quite perfunctory, stating that gold members can use it on computers, tablets and mobile phones, and can also use 480P resolution for screen projection; if higher resolution projection is required, platinum membership is required or the content is watched on a TV.

To put it bluntly, it is forcing gold members to upgrade to platinum members, otherwise, they can only endure standard definition when casting the screen. However, judging from the current charging standards of iQiyi, the annual fee for platinum members (218 yuan/year) is a full 100 yuan higher than that for gold members (118 yuan/year).

Not only that, after the Platinum VIP, there is also the Star Diamond VIP with a continuous annual subscription of 318 yuan/year. Maybe one day, iQiyi's Platinum members can only cast screens in 720P, and only Star Diamond members can enjoy 4K ultra-high-definition quality. Anyway, these rules can be changed at will by the platform.

After VIP, there is VVIP, then VVVIP, and VVVVVIP. iQiyi has almost figured out the Russian nesting dolls.

2. Long video platforms that are eager to monetize

Last year, Youku’s approach to restricting members from casting screens on long video platforms caused controversy. Compared with iQiyi, Youku’s approach was more ruthless, directly canceling the rights of VIP users to cast screens.

Starting from July 2022, Youku ordinary members can only try to watch 6 minutes of the screen. If they want to cast the entire series, they can only pay 12 yuan per month to become a KuMao member to enjoy the TV benefits. The current price of KuMao VIP is 218 yuan/year, which is the same as iQiyi Platinum Member.

▲Image source: Youku APP

Compared with Youku VIP, KuMao VIP can log in to one more device in addition to screen projection. This is due to another move by Youku that angered the public.

According to Youku's official statement, starting from December 20, 2022, Youku VIP users can watch on 2 devices at the same time, and KuaiMao VIP users can watch on 3 devices at the same time.

Youku claimed that it was "to protect user account security and combat illegal and gray industries", but it was obviously to limit account sharing between users and increase membership payment rates. Youku's move was also criticized by netizens as being small-minded, ugly, and self-righteous.

▲Image source: Youku VIP member Weibo

Whether it is restricting device login or canceling screen projection, the long video platform has only one purpose: monetization.

Spending money and suffering losses year after year can be said to be the norm for long video platforms in recent years. In order to save themselves, iQiyi, Youku and Tencent Video have tried every possible means, such as raising membership prices. Since iQiyi fired the first shot of membership fee increase in 2020, iQiyi, Youku and Tencent Video have continuously increased their monthly membership fees from 15 yuan/month to 25 yuan/month, an increase of 66.7%.

In addition, another "advanced on-demand" charge that users complained about was pioneered by Tencent Video. According to people familiar with the matter, the advanced on-demand service of "The Untamed" in 2019 earned Tencent Video 156 million yuan. However, as other platforms followed suit, more and more dramas followed suit, and user dissatisfaction intensified. Finally, on October 4, 2021, the three major long-video websites successively issued statements to cancel this service.

It now seems that this is not the beginning of the long video platform's "turning over a new leaf", and there are more membership traps waiting for users to fall into.

However, a series of self-help measures have indeed achieved remarkable results. In 2022, iQiyi achieved operating profit for the first time, breaking the "curse" of continuous losses of long video platforms. The financial reports of Alibaba and Tencent also showed that Youku Video and Tencent Video have achieved narrowing operating losses for several consecutive quarters.

3. Can high-quality content retain members?

In my opinion, reducing losses by tricking users is not a long-term strategy for the development of long video platforms, because the number of members on the site has fluctuated accordingly.

According to iQiyi's third quarter 2022 financial report data, the membership business, as its core pillar, had revenue of 4.222 billion yuan in the quarter, down 1.8% year-on-year. In terms of user status, iQiyi had an average of 101 million daily paying users in the quarter, down 3.5% year-on-year.

Tencent’s financial report shows that the total number of Tencent Video’s paid members in the third quarter of 2022 decreased by 9 million year-on-year and 2 million month-on-month.

Alibaba’s financial report shows that in the six months ended September 30, 2022, revenue from the digital media and entertainment division was 15.623 billion yuan, down 3% year-on-year.

The continuous increase in membership fees has eroded users' willingness to pay. In addition, the phenomenon of shoddy production, serious water injection, poor acting and melodramatic plots on long video platforms has also made many people unwilling to pay for bad dramas.

In order to satisfy users' desire for high-quality content and retain members to the greatest extent possible, iQiyi, Youku and Tencent Video have all begun to emphasize the creation of "high-quality content" . Youku even changed its brand proposition to "Go all out for good content."

In 2022, we have indeed seen a lot of high-quality hit dramas, such as iQiyi's five dramas with over 10,000 views, "The World", "Cang Lan Jue", "Punishment", "Daily Life of a Noble Lady", and "Wind Blowing in Half Summer", covering various themes and types; Youku has continuously launched hits such as "The Beginning of Love", "Gate of Rebirth", and "Please Call Me Director", and it has occupied six seats in the TOP10 of popular dramas on relevant lists such as Lighthouse and Maoyan in the first half of 2022; Tencent Video's "Dream of Red Mansions" has become a phenomenal hit drama.

▲Image source: "Dream of the Red Chamber" official microblog

But sometimes, whether a TV series can go viral is a mystery. For example, the opening drama of the year that iQiyi had high hopes for, "The Returned Daughter" produced by Misty Theater, saw a sharp decline in word of mouth, and its Douban score dropped directly from 8.3 points to 6.3 points, barely passing the finale.

The unstable content quality, coupled with the continuous fleecing by the platform, has made viewers increasingly disappointed, which has also led to the proliferation of pirated content. Under the topic #iQiyiAPPLimitScreenCast#, many users expressed their attitude of "supporting piracy".

▲Image source: Weibo user

What I want to say is that for the healthy development of the entire long video content ecosystem, "fighting piracy and maintaining genuine products" is a must. However, if you want users to be willing to pay for genuine content, I hope that long video platforms will spend less time on tricking users and more time on content production.

If the platform is full of good dramas like "The World", "Awakening Age" and "The Bad Kids", more people will be willing to pay.

Author: Su Ziqiu

Source: WeChat public account "Internet Brand Official (ID: szwanba)"