iQIYI s paid membership has doubled in more than a year, why is the stock price stagnant?

As a heavy stock of Hillhouse Capital, iQiyi's stock price has plummeted recently. iQIYI went public on the NASDAQ in March 2018 with an IPO of $18 and 50.8 million paid members. Just over a year has passed, and the number of iQiyi members has exceeded 100 million, but the stock price is still stagnant.

iQIYI's share price has increased by 60% from the all-time high, and the dollar has increased from the highest point this year. Why has iQIYI's paid membership grown at a rocket-like pace, but the stock price has not performed, on the contrary, the stock price has been getting weaker and weaker in recent months?

iQIYI has been under pressure recently for three reasons:

1. Affected by the economic cycle, advertising revenue declined;

2. Some content has been postponed due to review;

3. Investors are worried about the intensification of competition in the industry and the high cost of content.

The sharp decline in iQIYI's advertising business in the first half of the year is related to the entire industry,The first quarter is generally a regular off-season,Coupled with the economic downturn caused by international frictions,Internet companies that rely on advertising revenue are not having a good time。 At the same time, since 2018, the film and television industry has been affected by stricter policies, resulting in the postponement of most content launches, resulting in a slowdown in the growth rate of paid members.

Investors' concerns about the high cost of content have also eased in the first half of the year, but most of the reason is that the content cost has not yet been seen due to the delay in the launch of the content and the expected halving of actors' salaries. Almost all the negative effects are concentrated at the same time, and the collective reaction is reflected in iQiyi's performance in the second quarter. Much of the pessimism in the market has already been reflected in stock prices, so any change in negative sentiment is likely to lead to a large marginal improvement.

There are many reasons that affect the stock price, and it may be that the cost of construction in other places is too high.

There is no increase in the number of people who may use it, so the stock price does not grow.

Because this has nothing to do with the number of members, the key is to look at the operation of the leadership.

There may not be a direct reason for this! There are other reasons why the stock price is stagnant.

This is not based on the number of members to be able to stock the price, there are other factors.

Maybe it's not that there yet, maybe it's on the rise, but it's not there yet.

Nowadays, it seems that the price increase of **** members has become commonplace, and it has to be raised every once in a while. A few days ago, iQIYI issued a notice of price adjustment for iQIYI VIP members, saying that from December 16th, the iQIYI VIP member subscription** will be updated.

After the price increase, the VIP continuous monthly package was raised from 22 yuan to 25 yuan, the continuous quarterly package was raised from 63 yuan to 68 yuan, the continuous annual package was 238 yuan, and the ordinary annual card was 258 yuan. The continuous monthly subscription** for Star Diamond members is 45 yuan, the continuous annual subscription** is 428 yuan, and the ordinary annual card** is 448 yuan.

Other versions of the member** will not be adjusted at this time. Although the increase is not large compared to the original price, it is also real, and it is endless, and now it has become a price increase at least once a year.

For users who have purchased the continuous monthly subscription and annual subscription service of iQIYI ** Shiji Model and Star Diamond VIP members before 0:00 on December 16, 2022, and have not canceled the above-mentioned continuous monthly subscription and annual subscription service until 23:59 on June 15, 2023.

The official commitment is to enjoy the 6-month insured service, that is, before 23:59 on June 15, 2023, the automatic renewal payment enabled by the above users is still at the time of signing the contract**.

If you do not agree, you can cancel before 23:59 on June 15, 2023.

Yes, on November 6th, iQIYI officially announced that it will adjust the subscription fee for **VIP membership services, multi-terminal ** unified pricing, continuous monthly, monthly, quarterly, seasonal, yearly, and annual cards are 19 yuan, 25 yuan, 58 yuan, 68 yuan, 218 yuan and 248 yuan respectively. The pricing strategy will take effect on November 13, and membership users who have been automatically renewed will not be affected for the time being.

This is also the first price increase since iQiyi implemented the paid membership strategy, compared with the first launch of the membership payment system 9 years ago and has been used to this day, this price change has increased by about 26%. On social platforms, this price increase has not yet been fully accepted.

Many users said that they would not buy it again when the annual fee was renewed. Some users said that there is no high-quality content, and it has not been able to completely eliminate advertising, so it is better to watch piracy directly, netizens said: "Whether it rises or not is iQiyi's business, whether to buy it or not is my business." ”

After discovering the price increase, there is really no interest, and many other platforms can also watch it.

Recently,**The CEO of iQiyi publicly announced**Member price increase is an inevitable trend,He said,**The platform has invested a lot of costs,Purchased copyrights,The audience can see more and more film and television works,He also gave an example of copyright procurement from two million per episode,Everyone**Genuine film and television works,They also paid a lot of money to procure。

Although he explained a lot, some viewers still didn't buy it. The point that everyone complains about is that these bought film and television works are often censored, edited or deleted a lot of content, and there are also film and television resources developed by this ** platform that the audience does not want to see, but for the sake of that part of the audience wants to watch, everyone still has to buy this member, so everyone thinks that this price increase is not reasonable. Everyone's appeal is not about the price increase or how much the price has increased, but whether the money is worth it.

Nowadays, iQIYI's annual membership fee is 138 yuan. In an online survey, many netizens felt that such a price was unreasonable.

The annual fee of this **** is about 100 yuan, for many audiences, it is just necessary to have a part of the resources to demand, but they have to pay for this part of the resources, and it is better to subdivide the resources to charge. It's not that you want these resources for free, but you want to have a reasonable ** and a reasonable charging standard. Any consumer wants their money to be on the cutting edge, and their money is worth it.

The audience is willing to pay for high-quality film and television works, but they don't want those mixed content, I saw some messages from netizens saying that because of the price increase of the **platform, they have unsubscribed, such charges are unreasonable, and they are not willing to endure it silently, anyway, there are many **platforms, and the charges here are unreasonable, so you can go to other **platforms to watch.

Now iQiyi's annual membership is 248 yuan, which is nearly double the previous **, which makes many netizens unacceptable.

iQIYI's annual membership fee may be about 200 yuan if it is calculated, but in fact, this fee is not very expensive, and it is still acceptable.

iQIYI's annual membership fee is 120, this ** is very expensive now, and I can't afford to open it, so I didn't open it.

It's almost 178 yuan, in fact, it's almost 200 yuan a year, and this fee is actually okay, but the price increase will be higher in the later stage.

The cost of a year is 99 yuan, and if it is opened annually, the cost is also relatively affordable, and the official said that the price will increase later.

The annual membership is about 120, this ** is really very reasonable, and it is particularly cheap, I will also put the annual fee membership.