iQiyi and Tencent Video raise streaming prices for the first time but some users question whether the extra money is worth it
- Tencent Video and iQiyi, China’s two largest streaming sites, are raising subscription fees for the first time as they struggle to turn a profit
- Some netizens complain about poor user experience, saying the platforms are not justifying the price hike
For several years now, online audiences around the world have been forced to get used to the idea of periodic price increases – except in China. Now Chinese video streaming platforms are raising subscription prices for the first time, and netizens are not happy about it.
China’s two largest streaming services recently announced moves to increase prices as people have come to rely on online entertainment more than ever during the Covid-19 pandemic. Baidu-owned iQiyi, sometimes dubbed China’s Netflix, announced new pricing plans for members earlier this month. It is the first price hike its subscribers have faced since the service launched in 2011.
Tencent Video also said in an earnings call last week that it would be raising prices above the current rate of 19 yuan (US$2.88) a month, but the company did not offer any additional details. That is the price iQiyi charges now, up from the original 15 yuan.
“The subscription video services in China are sort of underpriced,” Tencent chief strategy officer James Mitchell said in the call. “And at the right circumstances then, we’re happy to look at the opportunity to adjust pricing in a way that is fair to consumers as well as to the content industry.”
While iQiyi’s price increase is modest, and fierce competition in the industry may force Tencent to follow suit, some people have already complained online that the services do not deserve the extra few yuan. A question soliciting views on increasing streaming prices recently became a top-trending topic on Q&A site Zhihu. The most popular answers said the platforms are relying on their market leadership without improving user experience.
“I’m not against video sites raising their prices, but of course this is based on the premise that they bring users better experiences,” one Zhihu user wrote in one of many posts complaining about the prevalence of ads on the platforms.
While paying for a subscription will keep users from having to watch video ads before movies or shows start, some users say small pop-up banner ads still show up while they are in the middle of watching content.
“We made the current price adjustments after carefully considering various factors such as changes in the market environment, platform development demands and user value creation,” said an iQiyi representative. “In the future, we hope to create more high-quality and innovative content, provide better user experiences, promote sustainable development of the industry, and build a healthier industrial ecosystem for content creators.”
Compared with international streaming services, Tencent Video and iQiyi might seem like a steal. Netflix, which now has 195.2 million paying subscribers worldwide, has steadily raised its subscription fees multiple times over the past few years. Its most expensive plan in the US has gone from US$11.99 to US$17.99, and the basic plan increased from US$7.99 to US$8.99.
Streaming platforms have tried to find more creative ways of extracting more revenue from their users, but it has proven difficult. In December 2019, Tencent Video and iQiyi both introduced a feature to allow subscribers to pay an extra fee to see upcoming episodes ahead of their normal release schedule.
