Should iQiyi prioritize exclusive content production or licensing popular third-party shows?

Introduction

The trade-off between prioritizing exclusive content production or licensing popular third-party shows is a critical decision for iQiyi's content strategy. This scenario involves balancing the potential benefits of original, differentiated content against the proven appeal of established third-party shows. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and resource implications.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about iQiyi's current market position. Could you share how we're performing relative to competitors in terms of subscriber growth and content engagement?

Why it matters: Helps gauge the urgency of the decision and informs strategy. Expected answer: Moderate growth, trailing behind top competitors. Impact on approach: Would influence aggressiveness of content strategy.

• Business Context: Based on our revenue model, I assume subscription fees are our primary income source. How significant is ad revenue, and how might it be affected by this decision?

Why it matters: Balances subscription-driven vs. ad-driven strategies. Expected answer: Ad revenue is significant but secondary to subscriptions. Impact on approach: Would influence content selection to balance both revenue streams.

• User Impact: I'm curious about our user segments. What percentage of our users are primarily interested in exclusive content versus popular third-party shows?

Why it matters: Helps tailor content strategy to user preferences. Expected answer: Mixed, with a growing preference for exclusive content. Impact on approach: Would inform content mix and marketing strategies.

• Technical: Considering our current infrastructure, how scalable is our capacity for producing and distributing exclusive content compared to licensing?

Why it matters: Assesses feasibility and potential bottlenecks. Expected answer: Production capacity is limited but growing; distribution is robust. Impact on approach: Would influence timeline and resource allocation for content production.

• Resource: What's our current budget allocation between exclusive content production and licensing? How flexible is this?

Why it matters: Determines financial constraints and opportunities. Expected answer: 60/40 split favoring licensing, with some flexibility. Impact on approach: Would guide investment strategy and risk assessment.