Gong Yu, CEO of iQiyi: Five major trends in the entertainment market in the Internet era

Recently, the 2017GMIC Global Mobile Internet Conference-Global Future Entertainment Summit was held in Beijing. Gong Yu, founder and CEO of iQiyi, delivered a keynote speech entitled "The Big Entertainment Industry in the Internet Era" at the meeting and shared the future entertainment market. Five trends.

Gong Yu used "In the Name of the People" as an example. Just one weekend apart, the number of views has increased from 600 to 700 million to more than one billion. This has to be said to be a miracle. He believes that the miracle is that on Internet video platforms, it is difficult to have popular adult male themes, but "In the Name of the People" has 70% male viewers and is older. The proportion of people over 35 years old is much higher than the proportion of users in the entire platform and industry.

Gong Yu said that the largest consumption in China in the future will be entertainment consumption, and mentioned five trends in the future entertainment market.

1. Entertainment consumption will be the biggest consumption;

2. Technology can allow everyone to have better entertainment, and technology will consume the time saved by helping people in the past.

3. Video is the most mainstream medium for human entertainment, and with the help of technological means, there is huge room for development;

4. Video platform is the most important entertainment platform in the entertainment industry in the future;

5. The relationship between platform and content is that the content is richer and the platform is more concentrated.

The following is the full text of the speech:

I just talked about "In the Name of the People". I said on Monday that this drama has reached 550 million yuan. I think it should now be 600 to 700 million yuan. It will be more than 100 million yuan if I turn on my mobile phone to watch it over the weekend. It is really a miracle. The miracle is that on Internet video platforms, it is difficult to have popular adult male themes, but 70% of this theme is read by men and is older. The proportion of people over 35 years old is much higher than the proportion of users in the entire platform and industry. Everyone talks about entertainment, and the theme I talk about is also related to this topic.

My first point is very simple. In fact, it is more a prediction or prediction of the future consumer market in China, which means that entertainment consumption will be the largest consumption. In the 39 years of reform and opening up this year, and in the 40 years of next year, we born in the 1960s and 1970s have all watched the tremendous changes in China society. What we have worked hard to improve human survival or the most basic conditions of life such as food, clothing, housing and transportation. However, this stage, when basic people's lives are solved by food, clothing, housing and transportation, has gradually calmed down and is not a peak.

Then, after everyone has settled the problems of food, clothing, housing and transportation, more time will be left. The spiritual level needs to be filled more, healthy content and healthy entertainment methods will be needed. This kind of entertainment consumption must be the main body of China's future consumption. In fact, we can see from consumption places in various places that the simple and traditional retail industry has been greatly affected. There are more restaurants, cinemas, culture and various entertainments, including themed entertainment and indoor entertainment. This entertainment consumption format is rising rapidly, but in fact, this trend is already very obvious.

In the entire development process, science and technology are an important link. In fact, in the past few decades, driven by science and technology, China society has greatly improved its production efficiency, so people have more time. But when people have more time, they enter the next stage of development, which means that technology can play a particularly important role, that is, technology can make everyone happy, let everyone better entertain, and consume the time saved by everyone. This is a very important future significance of technology. That is to say, the greatest significance of technology in the future comes from consuming human time.

This experience may be reflected in all aspects. Where we are engaged in the film and television industry, we can expect great changes in the film and television industry in the future. Its works and its way of thinking, including its personnel structure. Perhaps in the near future, half of the talents of future film and television companies will be engineers or technical, and the other half will be traditional creative.

In fact, there are already some individual companies in both China and Hollywood that already have this kind of personnel structure. The film and television I am talking about is a creation company, not a platform company. In fact, platform companies are already like this. For example, for iQiyi, thousands of people are half engineers and half creators. For pure production companies, we believe that the staffing structure will also become like this in the future, and technology plays a very decisive role in the production and dissemination of entertainment. Especially the birth of new technologies, such as VR technology, has created a larger space for entertainment for us.

The third point I want to share is that video is the most mainstream medium for human entertainment. In the second half of last year, I visited a large international museum and saw a stone tablet. It was more than 7000 BC. I was shocked to think about this number. It was densely engraved with hieroglyphs. I don't know what the inscription means, but nowadays archaeological scientists do not fully understand it. But obviously the information of human memory remains on it, so the most direct way to communicate between people and the most effective way is face-to-face. However, we cannot guarantee that all information transmission can be face-to-face, and most of it is like this. What to do at this time? We need a medium to record the information to be disseminated. Then the earliest graphics, characters, and the hieroglyphic characters between the two played a role. At first, they were carved on stone, maybe tree bark or animal skin. In the future, with the development of the most primitive technology, we have movable type printing, and sound has various recording methods. Later, there are video tapes and then the Internet. The same is true for video. The earliest movies later have television technology, and now there are disks and CDs, with various intermediate transition methods.

But because we meet people, the most effective way is sound, that is, we use all our five senses and sound and vision. So the development of video to this day can solve the recording and dissemination of most information, but most of the videos I see are flat, the clarity is not enough, and many details are ignored, because the technology has not yet developed to a certain stage. However, with the way higher-resolution video is recorded, produced, and disseminated, terminals with better computing power and storage capacity, better dissemination methods, and even better VR methods in the future, real scenes can be recorded and disseminated to human senses.

This method can basically be judged that video is the most important and mainstream communication method between people in the future, especially entertainment. So in the field of video, whether it is hardware, software, platform or creation, its development space is huge, giving us more imagination. With the development of the Internet, the world of communications, telecommunications, and movies has become flatter because of the Internet, and barriers in sub-industries have gradually been eliminated, allowing them to be organically integrated. In fact, when you look at Hollywood, the composition of a company's possible income is multi-faceted. For example, Disney TV accounts for more than 40 yuan in revenue and casinos account for more than 20 yuan in revenue. You will find that they are all different subsidiaries, and they have all been different sources of development in history. Through the final integration of capital power, the synergy is being integrated and integrated. Play greater in the future.

With the development of the Internet, especially in China society, the foundation of traditional industries is not so deep, so it is more of a new entertainment industry that is native to the world of the Internet. This is the last topic I want to talk about. Although video platforms and Internet video platforms are still video platforms, they will be very important and even the most important entertainment platforms in China's entertainment industry in the future. Because it has the Internet, and because its transmission content is the main way of entertainment communication, this video includes virtual reality VR.

So what is the future development trend between platforms and content? Because content has lower dissemination, storage, cost, and comprehensive cost with the Internet, it will have two effects to develop and grow together. A Matthew effect, the best kind is more explosive. For example, a film like "In the Name of the People" suddenly appeared on the Internet when everyone thought it was impossible to be a hit in the traditional film and television industry because of the cost of spreading it by word of mouth. Too low, including time costs.

Therefore, in a short period of time, the explosive growth of an excellent work is more obvious. Because of the Internet, as long as niche content is valuable to some audiences, its long-term effects will also be enhanced. That is to say, the original art films that can only be released in the original art theater theaters will find it difficult to survive in an industry that is difficult to develop. A kind of work, because of the Internet, you can easily find your target audience on the Internet and repay him in a suitable way, then this kind of niche work will have more living space and more rewards than the original, so the content of the long tail will also develop. Therefore, the content is more colorful and more diverse to meet people's needs, because people's needs are diverse.

On the other hand, the main effect of the platform is concentrated on the Matthew effect, because compared with the original TV stations, current platforms are more open and open, and content parties can cooperate with the platform in various ways. Then under the open platform, with this kind of low-cost transmission and cost situation, users will downplay the platform and value content more. Therefore, the platform can only produce a huge scale, and only the market concentration is concentrated on several platforms, not one but several platforms, because the platforms also have their own personalities, content, etc. However, this kind of platform is definitely not decentralized. It must be centralized. The overall efficiency is the highest on several centralized platforms. It is easy for users to find content and find the best content.

For producers, several platforms are competitive and can find a suitable platform based on their own hobbies or the attributes of their own works. Only then can they find the most suitable position, whether it is upstream or downstream, and the entire industry can be healthy and sustainable. development. Therefore, the content is richer and the market is more concentrated. This trend affects the future development trend of our industry, the technology industry or the entertainment industry.

The above five points are what I share with you about working in this industry. This idea is a trend now. It guides iQiyi and may also have some guidance for everyone's work. Thank you all!

Editor: vian