Why is there massive layoffs at iQiyi and no news from Tencent and Youku?

I recently saw the news about iQiyi’s large-scale layoffs. I also checked online to see if the information was true. I found that the news did exist, which means that starting from this year, iQiyi will The overall business structure has been adjusted and some non-profit businesses have made layoffs.

There are various speculations about this matter from the outside world, the biggest speculation is whether the long video business is still one of iQiyi’s profit points.

Today we will have a focused discussion and analysis on whether long videos can still be profitable.

First of all, judging from the development field and development potential of long video, the future development potential of the entire long video industry is still there, and it has not been fully explored. Therefore, the entire long video business, whether it is love Qiyi platform or other platforms, for the platform, this business must be a value-added business.

iQiyi has indeed developed very rapidly in recent years. Whether it is traffic or overall income of iQiyi, it can be said that iQiyi has developed very fast. In addition, it has continued to Regulating the price of the membership system has also allowed iQiyi to increase its overall profit margin a lot in a short period of time.

Due to the rapid rise of some short video platforms such as Tencent, Youku, Douyin and Kuaishou, iQiyi is facing the greatest market competition pressure, coupled with the country’s ban on some variety shows and misdeeds The ban on artists directly caused iQiyi to lose its competitive advantage in this aspect and put it in a weak position in the entire market.

Therefore, iQiyi has experienced a decline in the overall market and a slowdown in market regions. Against this background, it can only make strategic adjustments to its business, which is why there is news of iQiyi’s large-scale layoffs. Appear.

Then some people will ask, where is the way out for iQiyi?

In fact, it is not difficult for us to see the growth and development route of iQiyi carefully. The original iQiyi just stepped on the trend of the Internet, coupled with the explosive period of long video, the iQiyi platform rose rapidly. In just a few years, it has transformed from a platform with a few million traffic to a video website with a scale of hundreds of millions. Behind the changes in iQiyi is actually the change in platform traffic, but now the traffic trend has undergone a fundamental change. A lot of traffic no longer directly enters video website platforms such as iQiyi, but instead enters platforms such as Douyin and Kuaishou. Short video website platform.

The video content on this platform is updated quickly and is fresh, so it attracts many young people. Browse and watch on the platform. These platforms used this traffic to start e-commerce transactions, and these actions successfully attracted traffic to their own platforms.

If iQiyi wants to reverse its delay in the market, it can only focus on short videos and the quality of video content. Only in this way can the company's business entities slowly move forward and enhance the company's core competitiveness.