After 14 years of burning in the industry, the number of paid members of the video site has finally reached the 100 million mark.
On August 20th, iQiyi announced the second quarter financial report of as of June 30, 2019.
The financial report shows that in the second quarter of 2019, iQiyi’s revenue reached 7.1 billion yuan, a year-on-year increase15%, The market is expected to be 7.02 billion yuan; net loss for the quarter was 2.3 billion yuan, slightly higher than the market expected net loss of 2.265 billion yuan, an increase of 9.5%, compared with 2.1 billion yuan in the same period last year.
As of press time, the share price of Iqiyi fell by over 9%.
This quarter, Iqiyi subscription membership exceeded 100 million for the first time, reaching 100.5 million, a year-on-year increase of 50%. Dr. Gong Yu, founder, director and CEO of Aiqiyi said: “The total number of subscribers in the second quarter exceeded 100 million, which has become a milestone in the company’s development.
For each business, this quarter membership service revenue was 3.4 billion yuan, an increase of 38% over the same period in 2018. Iqiyi said that the original content is an important reason for the steady increase in the number of subscribers. However, this portion of revenue was flat compared to the previous quarter.
Online advertising revenue reached 2.2 billion yuan, down 16% year-on-year. Iqiyi said that is mainly due to macroeconomic changes, delayed broadcast of some content and information flow advertising. The income is less than expected and other effects. Among them, the content of the broadcast also affects its content distribution revenue, this quarter’s revenue is 517.9 million yuan, a decrease of 4% compared with the same period in 2018.
In terms of cost, this quarter’s revenue cost was 7 billion yuan, a 14% increase over the same period in 2018, and a 4.1% decrease from the previous quarter’s 7.3 billion yuan. Among them, the content cost is 5 billion yuan, an increase of 7% over the same period of 2018. The cost also showed a downward trend, compared with 5.3 billion yuan in the previous quarter.