On April 9th, $TENCENT (00700.HK)$The price of Tencent Video members has increased again. This is another price increase after the highest price increase of 50% in April last year. This time the highest price increase was 25%. Why is the price increase? Just look at a few sets of data to find out.
1、The number of paid Tencent Video members dropped 3.9% month-on-month to 124 million. This is the first time that paid members have shown a downward trend in recent years. The demographic dividend has peaked, and there is not enough chives; they can only be cut deeper. As long as you don't cut the chives, there's still room.
2、Take the paid video site Netflix as an example. The monthly membership fee is about 0.25-0.3% of the local per capita monthly income, and the domestic ratio is already over 0.5% after this round of price increases, but why is it still rising?
Because of hundreds of millions of paying users, how many people would seriously object to adding a few yuan? If you think about last year's opposition to “early access” charges, it's understandable how much effort was spent by those who competed against big companies.
What's more, essentially, long videos are entertainment, bringing happiness, and only adding 5 yuan/month. Isn't that less expensive and more “fragrant” than gaming gambling, eating, and singing K? This is the “principle of utility” in economics.
3、Long video copyright is really expensive. $iQIYI (IQ.US)$Aiuteng is unable to reduce copyright prices in the short term. The cost of purchasing various types of copyright (IP) generally exceeds 70% of total revenue.
How expensive is IP? For example, a major production series, made into...