Jing Gao sat at the top of the conference table, with the iQiyi software running on the Huawei phone interface in his hand.
Now iQiyi’s interface is very clean, without those messy advertisements. Comprehensively study Netflix’s model, which has completely different operating models from the other two major domestic Internet long-form video platforms: Tencent Video and Youku.
If the user does not have a membership, he or she cannot use iQiyi's services.
In fact, the current domestic Internet environment has reached the fourth quarter of 2018. Many Internet software require users to authorize, register, and log in before they can use it and see relevant information. The most typical examples are Dianping, a subsidiary of Meituan, and Ctrip-based websites.
It's just that iQiyi's approach is very radical. Users who register as members using their mobile phones must pay a membership fee before they can use it. Other websites and software only require the user's user information and mobile phone number. You can use it without recharging to open a membership.
However, iQiyi collects money directly. The current aggressive strategy has also led to a sharp decline in iQiyi’s membership, from 80.7 million members in the third quarter of 2018 to 38 million members.
And because iQiyi divested its "value-added business" into "Qiyi Super Coal", its revenue in the third quarter was about US$1 billion, and it plummeted after entering the fourth quarter. It's already mid-November, and the revenue data for October has been calculated, and it's terrible.
For this reason, iQiyi’s stock price also plummeted in the U.S. stock market. The market capitalization dropped from US$18 billion to US$12 billion.
This also provides an extremely good reason for iQiyi to apply to the U.S. Securities and Exchange Commission for delisting.
Since the U.S. capital market is not optimistic about us, then we will leave.
Listening to Gong Yu's introduction, Jing Gao put down his hand and said: "Returning to Hong Kong stock market for listing is a strategic goal and must be completed as soon as possible. I will arrange it as soon as possible for the Hong Kong Stock Exchange. Old Gong, you and Jiuge will do this. Wu Jingshu from Capital. I have only one request, be quick!"
Gong Yu said: "Mr. Jing, I understand! The progress in the United States is slow, and I have prepared the relevant legal firm and accountant work. It is estimated that the delisting work will be completed in half a month. It is the pressure on me from the board of directors. a bit big!"
In the large conference room No. 1, there are no members of the board of directors, only members of the management.
Chief Marketing Officer Wang Xiangjun, a female executive, said fiercely: "Mr. Jing, Mr. Gong will fully implement the strategy you formulated in the company. You must support us on the board of directors. Otherwise, everything will be pushed back."
Guan Yujia, who was sitting next to Jing Gao, glanced at Wang Xiangjun. She doesn't like people being rude to Jing Gao. Even if it's just a little offensive!
Jing Gao smiled and nodded, reassuring the management, "It's understandable that there is pressure on the board of directors. After all, the stock price has dropped like this. I will support you. Just go ahead and do it. The road is tortuous, and the future is bright. bright.
If shareholders have any objections, we must first listen and resolve them. After all, we have been partners for many years. Second, if they want to exit, we still need to provide an exit path without affecting the delisting action.
Phoenix Group can continue to increase its stake in iQiyi. I am very optimistic about iQiyi’s future and have confidence in iQiyi’s stock price performance after its listing on the Hong Kong stock market. "
Gong Yu felt relieved, he was really stuck during this period! The representatives of various shareholders on the board of directors have really pushed him hard during this period. This kind of thing will not be brought to the attention of the respective big bosses all at once, but the plummeting stock price of iQiyi may make the board representatives very anxious.
"Mr. Jing, thank you!" Gong Yu continued: "Next, I will show you the production and production process of the drama "Nine Floors", as well as the two episodes that have been piloted."
Jing Gao nodded, leaned back comfortably in his chair, and said, "Tell me about the process. I'll watch the two pilot episodes later during my lunch break."
"OK."
…
…
The drama "Nine Floors" was not completed by iQiyi's internal production team, but through a script bidding model. A small outside company called "Guangbai" won the bid and then formed a team to produce it.
What Jing Gao was explaining was iQiyi’s internal promotion, the newly appointed chief content officer Xu Tianyi. He played the prepared slides and introduced the process of internal creative generation, “First we analyze the domestic review system, and The current tastes of the audience have locked the genres into suspense, Republic of China, fantasy, and fantasy.
Suspense crime themes are quite popular recently. The drama "Daytime Chaser" is a rare good drama. We intend to imitate. However, for the convenience of review, the background of the story was changed to the fictional Republic of China. Fantasy means adding elements such as zombies and monsters. This facilitates the creation of special effects and creates a visual impact on the audience.
The current level of special effects in China can still be pretty good as long as you spend money.
After determining the genre, we set a budget of 100 million for this drama. Subsequently, within half a month, approximately hundreds of scripts were received. After reviewing it with my team, we finally selected the script for 'Guangbai Film and Television'.
Their scripts are the best! Mr. Jing, may I spare you a moment and tell you the plot in general? The script is very well written. I highly recommend. "
The atmosphere in the conference room became relaxed when he said this.
Jing Gao laughed and took a sip of tea, "I'll watch it myself later. If you spoil it, I won't have the pleasure of following the show."
Gong Yu made a gesture.
Xu Tianyi continued, "After the bidding is passed, we will assign producers and financers to the production team of 'Guangbai Film and Television' to control the direction of their stories and financial costs. We require the use of new actors and experienced actors. In short, funds should be spent on persuasion and special effects, rather than on stars' salaries.
We have already placed an order for 13 episodes of this drama. Two episodes were produced and put on our iQiyi website, receiving rave reviews. According to our own scoring system, it is currently 8.8 points.
This represents users’ expectations and recognition of our drama. Of course, there are mixed reviews on Douban. We internally believe that there are signs of trolls taking the lead. After all, it is impossible for our friends and businessmen to watch us walk down such a golden avenue. This is our highlight of the year! A work of transformation. "
Jing Gao smiled slightly, "Is it worse? Don't worry about their little tricks. There is a big problem with Douban's rating system, which only represents the taste of their user group. Please go back and join forces with Phoenix Films to build a rating website.
This is the first time this shooting mode works. Are there any problems? "
Xu Tianyi said without hesitation: "Mr. Jing, there are indeed many problems. We have discussed this internally many times. The first big issue is the topic selection of the script. If the entire company's script selection is There is only one genre, which will inevitably lead to the homogeneity of all the dramas on the website.
I ask General Empress Gong for instructions..."
Gong Yu smiled and waved his hand, "No. We discussed it together."
Xu Tianyi smiled and continued: "Our internal plan is still the same as before, which is to set up different topic selection groups, with two or three people forming a team. Performance will speak for itself, and performance will be linked to bonuses."
Gong Yu interjected, "Mr. Jing, this actually raises new questions. For example, how do we judge whether this drama is excellent or not? The most intuitive ones are the ratings and the number of times members have played it.
Is it possible that there is some kind of bias or fraud in these data? At present, the rice circle is rampant, and it is difficult for us to ensure that each account’s clicks and ratings are all members. rather than being manipulated.
The best solution is to increase membership fees. This will increase the cost of operation. Make them unprofitable.
Secondly, we currently have no channel to monetize popular dramas. In the past, after the series became popular, we could sell advertisements and the contracted actors could receive commercial endorsements. You can also go and sell peripherals. It can't be operated now.
The only monetization model is to increase membership fees, and the stock price will be reflected. It’s hard to walk this way! "
Jing Gao nodded, pondered slightly, and looked at Xu Tianyi, the chief content officer who was eager to try, "Go on, do you have any questions?"
Xu Tianyi said: "Mr. Jing, after the problems we encountered in script selection, we also encountered a big problem, that is, there is a good script, but the company that wins the bid may not have a good production team. For example, a little bit TV directors who are capable will basically not be recruited by small companies.
Another example: Fu Huadao team. There are good teams in China, but these small companies may not be able to hire people with the funds we provide, and their schedules cannot be arranged. This needs to be coordinated by our producers.
This greatly increases our burden and workload, and we need to continue to support different companies and teams. This makes us miserable! "
