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.
