iQIYI's revenue in 2023 will be 31.9 billion yuan to improve services and reconstruct the film and television ecology
iQIYI's total revenue this year was 31.9 billion yuan, an increase of 10% over the same period last year; On a GAAP basis, the company's operating profit this year reached 3.6 billion yuan, an increase of 68% over the same period last year. The company's net profit reached 2.8 billion, an increase of 121% over the same period last year, the company's profit growth exceeded the increase in operating income, and has achieved a large operating income in the second year.
iQIYI founder and CEO Gong Yu also said in a ** meeting on revenue that following the reversal of performance in 2022, the company continues to maintain a strong momentum, and is expected to create the best year in history in 2023, including total revenue, operating profit, net profit and cash flow, all of which have created the best in history.
Looking forward to the future, iQIYI, as a leader in the long-term industry, will continue to uphold the long-term strategy, continuously improve content creativity and operation management through continuous technological innovation, and improve the return on investment of content in a systematic way.
From a business perspective, iQIYI's main operations in 2022 saw its member service revenue of 20.3 billion, up 15% from the same period last year. iQIYI said in its earnings report that the increase in its member business was due to an increase in the average revenue per member (ARM) per month, as well as an increase in the number of annual paying subscribers each year.
iQIYI's monthly per capita monthly income increased by 13% over the same period last year, reaching 1598 yuan, with an average monthly paying user of 100.3 billion, and on this basis, 4.8 billion member business income was generated. By the end of 2023, its registered users have reached 10.111 billion, has maintained a scale of "100 million".
It is worth mentioning that iQIYI's monthly average monthly paying users in the third quarter of this year reached a record 1554 bucks. Based on this, iQIYI continues to carry out value-added services based on membership, which improves the value of users, increases their desire to pay, and makes a bigger leap in the fourth quarter, reaching a monthly increase of five months.
It is understood that iQIYI launched a new version of "Unlimited Points" for the first time in "Lotus Building", which greatly improves the payment experience of members. In the fourth quarter of this year, iQIYI released a total of six plus gifts, the number of people increased by 50% year-on-year, the number of players who received rewards increased by 40%, and the number of players with big bags also increased by 250%.
In addition,iQIYI has also carried out an all-round improvement on the large screen above the platinum**Service,NowFQI image MAX has passed157TV products,Up to"4 K Max+HDR+Panoramic sound"Audio-visual experience such as "high-quality audio-visual range。
In addition, iQIYI also attaches great importance to different types of members and different discounts, and has set up VIP seats in "Ning'an Dream Appreciation Gift" and "iQIYI's Scream", and senior members can also enjoy ** discounts. On the whole, the memberization strategy of this leader has reached a closed loop in the entire value chain.
With the stability of paying audiences, iQIYI achieved a free capital flow of 3.3 billion by the end of 2022, and its financial situation is getting better and better. Gong Yu said that in 2024, this ** will also optimize member products, content scheduling and operation, and will also increase the stickiness of members and extend their life.
In the long-term competition, delivering high-quality content to users will always be a source that can ignite the traffic and voice of the entire platform and bring greater profits to the company.
According to the statistics of Yunhe Research Institute, the market share of iQIYI TV dramas has maintained the first place in the industry for three years, and iQIYI ranks 7 in the list of active ** rights of new dramas in 2022. iQIYI has record-breaking popular TV series such as "Yi Nian Guan Mountain", "Ning An Like a Dream", and "Three Teams" in the fourth season of this year, all of which are aimed at this drama.
According to the data, iQIYI's 9000+ works in 2023 have increased by 71% compared to 2021, mainly because original TV series are driving this process. Among the new popular TV series launched this year, original works account for 65%, of which original works account for 80% of the revenue, and have lasted for seven months, exceeding 50%.
Gong Yu said that due to iQIYI's advantages in content management and flexibility, the content cost of TV dramas in 2022 will be reduced by 12% compared with 2022, which will have a positive effect on profitability, and has the ability to produce more original content, so as to maximize the effect of input and output.
In addition, iQIYI has also achieved remarkable results in film and television, animation and children, etc., and the market share of movies in 2022 will reach 47%, and all original films will reach hundreds of millions of box office; The number of original animation distributors has increased significantly, with revenue increasing by more than 90% compared to the same period last year, and 11 original children's IPs have been launched, as well as 8 quarterly works.
The output of high-quality content opens up a larger market for other business developments, such as online advertising. As popular TV series and entertainment programs become more and more popular, this has also helped this ** attract more money and attract more users.
iQIYI's online advertising revenue in the fourth quarter of this year was 1.7 billion, an increase of 6% over the same period last year, and both brand advertising and performance advertising showed a steady growth trend. In these businesses, product-targeted advertising revenue accounts for more than 50% of revenue, and the production of generative AI is driving the growth of performance advertising.
Gong Yu has said in public on several occasions that iQIYI's goal is to "become an excellent entertainment company through technological innovation", and "technological innovation" and "greatness" are the two words that iQIYI wants to build an "entertainment empire". With the innovation of artificial intelligence, iQIYI continues to inject vitality into the entire entertainment industry with the innovation of science and technology, expanding the imagination of users.
iQIYI said in the performance report that in order to improve the effectiveness of production and operation, its "cloud" technology on *** can be used to cloud computing processing of the original**. Gong Yu said in the first quarter performance meeting, iQIYI uses virtual technology to increase the work efficiency of directors by 30%, and reduce the work team of 1 3.
Generative AI has formed a complete set of film and television planning, opening, production, publicity and other processes, which greatly improves the efficiency of creativity, reduces the production cost of creativity, and enhances the ability of creativity and decision-making. iQIYI's new TV series "Big Dream Returns" has more than 3,000 minutes of ** material.
In addition, iQIYI has also launched the "Xingluo Story Interpretation" software, which can quickly produce corresponding wonderful content through the understanding of barrage, comments and key pictures, and make your own**. Moreover, AI's analysis of movies and TV series can also help them refine the synopsis of the songs, and there are currently more than 3,000 shows.
Liu Wenfeng, CEO of iQIYI, believes that the generative development of artificial intelligence can provide more opportunities for the film industry. Next, iQIYI will increase the research and application of generative artificial intelligence, combine film materials and big data, train and optimize it, and develop vertical applications for the film industry.
Gong Yu also said in a ** meeting that in addition to traditional programs, iQIYI is also committed to developing new business models to cultivate and cultivate new growth channels. The main development directions are: overseas operations, IP-related online and offline, and technological innovation generated by generative artificial intelligence.