China’s leading long-form video platform, iQiyi, is facing a storm of criticism from users after deciding to remove the ad skip option from its basic membership. This change has sparked a lot of discussion online, prompting the Baidu-backed platform to clarify their stance.
The Change and the Backlash
So, here’s what happened. iQiyi decided that basic members would no longer have the option to skip ads. Naturally, this move didn’t sit well with many subscribers. People took to social media to voice their frustration, and the topic quickly gained traction.
iQiyi responded on its official Weibo account, explaining that basic membership is designed for users who are okay with watching ads in exchange for access to members-only content at a lower price. They pointed out that the differences in price and service between basic and gold memberships are clearly listed on the subscription page, allowing consumers to make an informed choice before subscribing.
Why iQiyi Made the Change
The company’s reasoning behind this change seems pretty straightforward. They likely want to push more users towards their gold membership, which offers an ad-free experience among other perks. With the removal of the ad skip option, basic members now face a decision: either put up with ads or pay more for a premium experience.
In their first-quarter report, iQiyi noted that their subscriber service revenue was down 13% to RMB 4.8 billion compared to the same period last year. They attributed this drop to the “high base effect” from the same period last year, which means they had unusually high revenue at that time, making this year’s numbers look smaller in comparison.
User Reactions
Many users feel that iQiyi is pushing them too hard to upgrade to the more expensive gold membership. They argue that removing the ad skip option from the basic plan is a sneaky way to make more money, without offering any additional value in return.
On the flip side, some users understand the company’s position. They see the basic membership as a budget-friendly option and don’t mind watching ads if it means they can still enjoy exclusive content at a lower price.
The Bigger Picture
This incident sheds light on a broader trend in the streaming industry. Companies are constantly looking for ways to increase revenue, and sometimes that means making changes that aren’t popular with users. It’s a delicate balance – keeping prices low while still offering a premium experience that justifies the cost.
For iQiyi, this move is a gamble. They risk alienating a portion of their user base, but they might also succeed in converting more basic members into gold members, boosting their revenue in the long run.
What This Means for Marketers and Businessmen
If you’re a marketer or business leader keeping an eye on the Chinese market, there are a few takeaways from this situation. First, transparency is crucial. iQiyi made a smart move by being upfront about the changes and explaining their rationale. Even if users aren’t happy, they appreciate honesty.
Second, it’s important to offer clear value at different price points. iQiyi’s tiered membership model allows users to choose what works best for them, but each level must offer a compelling reason to upgrade. In this case, the key difference is the ad-free experience and additional perks of the gold membership.
Finally, be prepared for backlash when making changes that affect user experience. The digital age means that feedback, both positive and negative, spreads quickly. How you respond can make a big difference in maintaining customer loyalty.
Looking Ahead
It will be interesting to see how this situation unfolds for iQiyi. Will the backlash die down, or will it lead to a more significant loss of subscribers? And how will other streaming platforms in China respond? Will they follow iQiyi’s lead or stick to more user-friendly policies?
For now, marketers and businessmen should watch closely. The streaming industry in China is fiercely competitive, and every move can set a precedent for the future.
In the end, it’s all about finding the right balance – offering great content at a price that users are willing to pay, without making them feel like they’re being short-changed. iQiyi’s latest move is a bold one, and only time will tell if it pays off.
