Research On The Financial Effect Of IQIYI’s Profit Model From The Perspective Of Value Chain

Cultural power and cultural rejuvenation are important projects during the 14th Five-Year Plan period,and the media,as an important carrier for disseminating culture,is particularly important during this period.In the "Internet+" era,with the rapid development of technology,the accelerated iteration of traditional industries,and the emergence of emerging industries,video websites have become the backbone of the media field,providing more colorful content and allowing people’s spirits to get more diverse experiences.The prosperity and development of the film and television industry will inevitably drive the development of related enterprises,and for enterprises,profit is fundamental,profit can ensure that enterprises have healthy cash flow,occupy the leading position in the market,and promote the positive development of enterprises.Combine the value chain with the profit model,analyze the profit factors of the company’s business activities according to the role and relationship within each business chain of the value chain,form an efficient and integrated profit model of the enterprise,and ensure the sustainable and comprehensive development of the enterprise.After 12 years of continuous exploration,iQIYI Video has continued to rank first in the industry in important indicators such as user scale,user activity and user stickiness,and has become the "leader" of the industry.Therefore,taking iQIYI Video Website,one of the largest online video platforms in China,as an example,we analyze the five elements of iQIYI Video website’s profit model at each business level from the perspective of the value chain,evaluate the financial effects presented by its different business levels,find out the problems in its profit model,and propose countermeasures to improve its financial effect from the perspective of profit model elements,so as to find a way out for the individual development of iQIYI Video Website and provide new impetus for the development of video websites.By combing the literature related to profit model and financial effect at home and abroad,the meaning and main links of the value chain,the meaning and element composition of the profit model,the meaning and evaluation method of financial effect are defined,and the value chain theory,core competitiveness theory and profit model five-element theory are expounded.Based on this,firstly,the current situation of iQIYI Video Website is introduced,including iQIYI’s main business and its value chain combing,and the five elements of membership value-added services,online advertising services and content distribution are analyzed from the perspective of value chain,including profit points,profit objects,profit sources,profit levers and profit barriers.Secondly,it analyzes the financial data generated by the five elements of each business profit model from the perspective of the value chain,conducts a comprehensive financial evaluation of iQIYI Video website,and points out the problems of slowing down the growth rate of membership business,declining advertising business revenue and high content costs in each business branch.Finally,in view of the specific problems existing in the profit model of each business link,countermeasures such as strengthening the retention of profit objects,broadening profit sources and building a solid profit barrier are proposed.Through the analysis of the financial effect of iQiyi’s profit model,the first echelon of China’s video website industry,it provides experience for other Internet video companies in a loss-making state.