iAsk x China Daily | When can iQiyi make a profit?

“看到创新的东西，我们愿意去付出一些更高的价值。硬的成本都是一样的，所有的价值是在于前期的创意，一个剧本花了三年和花了一年就是不一样，它就应该获得更高的溢价。”

"If we see creative content, we are willing to pay more for it. Despite the fixed hard cost, the value of content is embedded in creativity from early stages. A script completed in three years differs from one completed within a year. The former deserves more premium."

这是爱奇艺首席内容官王晓晖在今年5月的网络视听大会上的发言。为了获取用户、为了抢夺流量，也为了能保持行业第一的位置，爱奇艺在过去几年不计成本的疯狂砸钱，去年90亿的亏损额甚至是之前三年亏损的总和。

This is the speech by Xiaohui Wang, Chief Content Officer of iQiyi, at the China Internet Audio & Video Convention in May this year. In order to gain users, snatch traffic, and maintain the lead in the industry, iQiyi has invested heavily in the past few years without considering costs. Last year, the loss of RMB 9 billion even equaled the total losses in the previous three years.

爱奇艺创始人龚宇曾表示，变局背景之下，爱奇艺正迎来关键时刻。视频内容审查趋严，抢夺IP的烧钱比拼，短视频的颠覆性冲击……本期《艾问顶级人物》，艾问创始人艾诚对话爱奇艺首席内容官王晓晖，揭秘长视频领域老大的生存现状。

Yu Gong, Founder of iQiyi, stated that in the face of changes, iQiyi is confronted with critical moments. Video censorship is becoming stricter; the competition over IP investment is getting fiercer; short videos have brought about overwhelming impacts... In this issue of "iAsk Top Leader", iAsk Founder Gloria Ai spoke with iQiyi Chief Content Officer Xiaohui Wang, revealing the business status quo of the industry leader in the long video sector.

视频内容的审查有多严？

How strict is video censorship?

政策不断收紧、市场风向大变，是2019年电视剧从业者最直观的感受。

Regulations have become stricter and the market trend is changing drastically. This is the most intuitive insight for television practitioners in 2019.

去年广电总局先后颁布了多条政策，对于电视剧内容导向、演员薪酬配比、网络视听节目的内容审查等多方面进行了规范和监管，再加上各种“限令”，目前的电视剧行业已经发生了很大的变化。

Last year, the National Radio and Television Administration promulgated a number of policies to regulate and supervise the content of TV dramas, actors' pay, and the content of online audiovisual programs, along with various "restrictions". The current television industry has already undergone major transformations.

今年7月，广电总局电视剧司召开“电视剧内容管理工作专题会议”，要求各省级管理部门全面强化内容把关，加强行业综合治理。而对于广播电视和网络视听节目，相关部门早就开启了24小时不间断地监看模式，线上线下执行统一标准，对重大项目基本上都是提前介入，加强对优质剧集的引导；对于“苗头”不对的剧，基本上不等成片及时下架。

In July 2019, the TV Drama Department of the National Radio and Television Administration held the "Special Seminar on TV Drama Content Management", requiring all provincial-level management departments to comprehensively strengthen content control and comprehensive management of the industry. For broadcast TV and online audiovisual programs, relevant departments have long been monitoring around the clock, implementing unified standards online and offline and basically intervening in advance for major projects to enhance the guidance of high-quality dramas; dramas that do not seem "politically correct" would basically be taken offline before production completes. 

一位曾经参与审片工作的审片员表示，即便是电视剧/节目审核通过甚至定档了，也别高兴得太早，即便你通过了一道一道审查，也未必能逃得出网络群众的举报和有关协会的抗议。

A censor who has participated in film review expressed that even if a TV drama/program is approved after censorship and even scheduled for airing, you shouldn't get your hopes up too early. Even if you manage to pass rounds of censorship, you may still be reported by netizens or protested by relevant associations.

三年前加入爱奇艺的王晓晖，曾是中国人民广播电台的副台长，26年的传统媒体行业经验，让他对内容审查有着更深刻的理解。

Before joining iQiyi three years ago, Xiaohui Wang served as Vice President of China National Radio. With 26 years of experience in the traditional media industry, Xiaohui Wang has gained a deeper understanding of content censorship.

艾诚：现在最重要的工作之一是要看剧？

Gloria Ai: Is one of your most important job responsibilities now to watch TV dramas?

王晓晖：看重要的剧，尤其是那些重大题材、敏感的，我是一集不落。比如像《延禧攻略》，从头到尾看完，《皓镧传》六十多集看完，因为它要送审。

Xiaohui Wang: I watch major TV dramas, especially those of critical or sensitive subject matters. I don't miss a single episode. For example, I finished watching "Story of Yanxi Palace" from the beginning till the end as well as "The Legend of Haolan", which has more than sixty episodes, because these need to be examined.

艾诚：送审会问你什么问题？

Gloria Ai: What questions would you be asked when the dramas are submitted for review?

王晓晖：比如说价值观正不正。

Xiaohui Wang: For example, whether the values are correct or not.

艾诚：什么样的剧情是不行的？

Gloria Ai: What kind of plot would be censored?

王晓晖：我们国家有很多规定的，对外公布了很多规则。比如说小三永远不能修成正果，不能破坏家庭成功，比如说美国电影里经常有警察打人，国内的影视剧里不能出现。

Xiaohui Wang: There are plentiful regulations in China, and a large number of rules have been announced. For example, a mistress can never be justified or successfully wreck a family. Additionally, in American movies, there are often scenes of police beating civilians, which can never appear in Chinese films and TV dramas.

但因为艺术方面很多时候是主观的，在审查阶段，专家会提出一些具体的意见，需要仁者见仁、智者见智，比如他说这个镜头过于血腥，你可能觉得不血腥，他说这个镜头可能过于刺激孩子，你可能觉得对孩子没有什么影响，双方要进行沟通。

However, opinions about artworks can often be subjective. During the review, experts will put forward specific opinions, as the benevolent see benevolence and the wise see wisdom. For example, they might consider a scene violent, but you don't think so; they might feel that a certain scene might scare children, yet you disagree. Both sides need to communicate on this regard.

艾诚：很多海外影视剧到中国来，我们发现大量地被删减，都删减什么呢？

Gloria Ai: When lots of foreign films and TV dramas are introduced in China, we noticed that plenty of those are censored. What kind of scenes would be cut out?

王晓晖：首先“黄”肯定不行，此外过度的暴力、血腥也不行，在好莱坞那些B级片里面特别明显，暴力和性是他们的两大元素。

Xiaohui Wang: First of all, "erotic" scenes are definitely not allowed. In addition, excessively violent and bloody scenes are prohibited as well. It is especially obvious among Hollywood B films. Violence and sex are the major two elements.

艾诚：如果出了事问责吗？

Gloria Ai: If something went wrong, would anyone be held accountable?

王晓晖：当然问责，我还被罚过款。比如我们有些内容可能不太符合规定，就下线了。

Xiaohui Wang: Of course, I have been penalized. For instance, some of our content might not conform to certain regulations, so we took them offline.

爱奇艺什么时候能赚钱？

When can iQiyi make profits?

在《财富》最新发布的2019年中国500强企业榜单上，爱奇艺凭借2018年全年250亿元营收再度入围，并且排名较去年上升78位，也是榜单上唯一入围的在线视频平台。

On the latest list of China's top 500 companies in 2019 published by Fortune, iQiyi was re-nominated with operating revenues of RMB 25 billion from 2018, up by 78 places compared to last year. It is also the only online video platform nominated.

但稍显无奈的是，在《财富》同步发布的百强企业“亏损”名单中，爱奇艺亏损额高达94亿元，仅次于美团。今年5月，爱奇艺发布了一季度财报，净亏损达18亿元，比去年同期多了14亿。

However, pitifully, on the list of "losses" of the top 100 companies simultaneously released by Fortune, iQiyi’s loss amounted to RMB 9.4 billion, second only to that of Meituan. In May 2019, iQiyi released its first-quarter earnings report, with a net loss of RMB 1.8 billion, a year-on-year increase of RMB 1.4 billion.

尽管爱奇艺在内容方面的巨大投入收获了成效，但几乎同一时间在买版权、自制剧、推综艺等多个方面同时发力，还是吞噬了爱奇艺的绝大部分利润。

Although iQiyi has gained from the substantial investment in content, the simultaneous investments in the purchase of copyrights, original dramas, variety show promotion and more have also consumed most of the profits of iQiyi.

就在三个月前，王晓晖在爱奇艺世界大会上宣布，2019年爱奇艺的内容投入仍然超过200亿元，保持两位数增长。

Three months ago, Xiaohui Wang announced at the iQiyi Technology & Entertainment World that in 2019, iQiyi still invested over RMB 20 billion in content, maintaining double-digit growth.

艾诚：爱奇艺在内容和研发上的投入是非常非常巨大的，2018年全年亏损91亿，这个钱是怎么花出去的？

Gloria Ai: iQiyi has invested massively in content and R&D. In 2018, the total loss reached RMB 9.1 billion. How did iQiyi spend this much money?

王晓晖：几方面的影响，最大的一方面是来自于前几年大IP的价格，企业之间的竞争进入白热化的时候，推高了价格。

Xiaohui Wang: It was impacted by several factors. The most influential factor was the price of the major IPs from the previous years. When the industry competition reached its peak, prices were bumped up consequently.

艾诚：就是买剧？

Gloria Ai: To purchase TV dramas?

王晓晖：大家竞争，买剧的时候你出1000，他出1万，你出1万他出10万，价格就飙上去了，这是其一。第二，也跟很多热钱涌入有关系，2014、2015年的时候，资本突然发现影视公司很赚钱，发现影视公司可以上市，热钱大量涌入，涌入以后开始找这个行业的逻辑，一看买大IP，找来大明星，投入大制作就能赚钱，所有制作公司都去找明星，明星的价格肯定飞涨。这个行业如果是价格信号扭曲，大家都不是最终的赢者。

Xiaohui Wang: When everyone is competing to purchase a drama, you offer RMB 1,000, then someone else might offer RMB 10,000; when you offer RMB 10,000, another one might offer RMB 100,000. That's how prices go up. That's the first point. Secondly, it was influenced by the inflow of hot money. In 2014 and 2015, the capital market suddenly realized that the film and television sector was very profitable and that these companies can go public. Hence, the industry was swamped with hot money. Investors started exploring for the business logic of the sector. They observed that they can earn profits by purchasing major IPs and hiring famous celebrities. When all the production firms chased after celebrities, the cost would certainly skyrocket. If the price signal of the industry is distorted, no one can be the ultimate winner.

艾诚：所以也有了对明星的限薪令，对影视行业的审查趋严，这些变化会如何影响长视频生态？

Gloria Ai: As a consequence, the government started imposing caps on celebrity pay and monitoring the film and television industry more strictly. How will these changes affect the long video ecosystem?

王晓晖：我觉得现在逐渐趋于理性了，调整这一天迟早是要来的。

Xiaohui Wang: I believe that it is gradually becoming reasonable now. Adjustments will take place sooner or later.

艾诚：那爱奇艺什么时候能赚钱？

Gloria Ai: When can iQiyi earn profits?

王晓晖：两年以后，如果不再搞无谓的价格“军备竞赛”，两年以后这个行业是能容得下两三个平台都盈利的。你要想打“军备竞赛”，拼命想把对方拉下来，只会把成本弄得越来越高，那你不可能盈利。

Xiaohui Wang: In two years. As long as industry players give up on the meaningless "arms race", a couple of platforms will be able to make profits in two years. If you persist with "arms race" and go out of your way to take down your competitors, you will only end up with rising costs and no profits.

爱奇艺能一家独大吗？

Can iQiyi monopolize the market?

2018年，在长视频用户增速放缓、月度活跃用户及使用时长逐渐接近天花板的情况下，短视频一路逆势上涨，渗透率从49.8%增至67.7%，用户规模从4.88亿增长到7.44亿。

In 2018, as the growth rate of long video users slowed down and the number of monthly active users as well as the length of use gradually approached the bottleneck, the short video sector grew robustly, with an increase of market penetration rate from 49.8% to 67.7% and a rise in the number of users from 488 million to 744 million.

在王晓晖看来，2018年影视剧制作行业都很焦虑，爱奇艺正是在这种焦虑中杀出来的，做好原创内容，努力了解用户。越是面临行业洗牌，越是遇到增长瓶颈，越应该回归初心。

From Xiaohui Wang's point of view, practitioners of the film and television production industry felt very anxious in 2018. iQiyi managed to break through the anxiety by producing original content and trying to understand users. The more you face industry reshuffle and encounter growth bottlenecks, the more you should stick to the initial vision.

（来源：国金证券研究所）

今年一季度，爱奇艺订阅会员达9680万，腾讯视频订阅会员达到8900万，芒果 TV的付费会员也突破了1331万。6月22日，爱奇艺宣布会员数量突破1亿，这意味着爱奇艺已经成为全球范围内，首个单一市场视频会员体量破亿的平台。

In the first quarter of this year, the number of members with subscriptions to iQiyi reached 96.8 million; Tencent's Video, 89 million; and Mango TV, over 13.31 million. On June 22, iQiyi announced that the number of members exceeded 100 million, which means that iQiyi has become the world's first and only video platform in a single market to reach 100 million members.

王晓晖说，未来十年，竞争、拼杀依然会是主旋律，爱奇艺要做那个胜出者。

Xiaohui Wang said that in the next decade, competitions and battles will still be the mainstream, and that iQiyi yearns to be the winner.

艾诚：在国内的长视频领域，爱奇艺未来有没有可能一家独大？

Gloria Ai: In the long video sector domestically, is it possible for iQiyi to monopolize the market in the future?

王晓晖：第一总是有的，但这个市场不可能实现独家垄断，也就是说你拥有超过50%以上的份额，不可能。

Xiaohui Wang: Being at the industry top is possible, but it is impossible monopolize the market, which means that you need to possess more than 50% of market shares. Impossible.

艾诚：那如果再有一家友商跟你一起来称霸这个江湖，会是谁？

Gloria Ai: If there is another competitor partnering with you to dominate the market, which company would it be?

王晓晖：在现阶段而言是我们跟腾讯，这两家还是并驾齐驱的。从各种数据指标来看，两家还是处于一个比较领先的地位。单从戏剧的流量而言，这两家大概已经占到了70%，将近80%的市场份额。

Xiaohui Wang: At this stage, we are neck and neck with Tencent. Based on various data indicators, the two are still in a leading position. In terms of the streaming traffic of dramas alone, the two companies already account for 70% to nearly 80% of market shares.

但这个市场是公平的，创意市场天生是一个分散性的市场，是非标产品，你不可能说我批量生产《泰坦尼克》，批量生产《阿凡达》。

However, the market is fair. The creativity market is a decentralized market by nature, which cannot be standardized, just like how it's impossible to mass produce "Titanic" or "Avatar".

艾诚：我们谈到了爱奇艺的竞争对手，有奈飞、有腾讯，但在这个破坏式创新的时代，最后扼杀你的不一定是你的直接竞争对手，它可能是一个突如其来的不速之客。2018年短视频的用户同比增长471%，诸如快手、抖音这样的短视频平台，它们在您的世界里面是竞品吗？

Gloria Ai: We talked about iQiyi's competitors, including Netflix and Tencent. However, in this era of destructive innovation, it might not be a direct competitor that defeats you eventually. It could be an unexpected rival. In 2018, the number of users of short videos rose by 471% year-on-year. Are platforms such as Kuaishou and TikTok competitors in your industry?

王晓晖：当然是，因为最终大家其实都是争夺用户的时间。比如说今日头条的竞争对手可能是微信，微信的竞争对手可能是爱奇艺，爱奇艺的竞争对手可能还是淘宝，争的都是用户的时间，谁更好玩，谁更对我有用。但我还认为长视频还有很大空间的，包括时间红利和人口红利。

Xiaohui Wang: Of course, because in essence, everyone is actually competing for users' time. For example, Toutiao's competitor could be WeChat; WeChat's competitor could be iQiyi; iQiyi's competitor could be Taobao. It's a competition for users' time, depending on which platform is more fun or more useful. But I think there's still large room for long videos, thanks to time bonuses and demographic dividends.