Research On Profit Model And Financial Performance Of Video Website

With the continuous upgrade of domestic Internet speed and bandwidth and the booming development of mobile Internet,the demand for online viewing of various types of film and television dramas is increasing,and many video website companies have been born.Some of which are developing rapidly under the background of large companies,such as iQiyi,Tencent Video;some have pioneered new ways to seize the niche market with community model,such as Bilibili and acfun;nowadays some representative new forces such as TikTok and Kwai featured by short videos have been born.It can be said that with the development of the economy,the scale of the online video industry will continue to grow rapidly in the future,and the competition for users and the market will continue to be fierce.There are two typical characteristics of domestic video websites:one is driven by user growth,the other is characterized by strong community and direct users.Iqiyi is the former,and BiliBili is the latter.This article takes two companies,iQiyi and Bilibili,as the research objects,analyzes the elements of the two companies’ profit models,and further analyzes how their profit models affect their financial performance.This article adopts the literature analysis method and case analysis method.First,it conducts an integrated review of the domestic and foreign profit models and the relevant literature on the profitability of video websites,and extracts the relevant theoretical knowledge required for this article.Secondly,it introduces the development history of the Internet video industry and the basic situation of the two companies,and then compares and analyzes the components of the profit model of the two companies.Third,based on the data disclosed by the two companies,evaluate and studies the impact of profit model on financial performance.Finally,summarize the pros and cons of its profit model,and put forward suggestions for improvement.The research conclusions show that Bilibili’s profit model is more innovative and developable,but other video industry companies cannot simply copy it.The profit model represented by iQiyi needs to solve the negative impact of high cost and low income growth on financial performance to enable the company to survive better.