From attention to contention for creators
Editor’s note: This article comes from WeChat public account “rhino entertainment” (ID: piaofangtoushijing), the author Yuan Fang Pu Fang.
Recently, Google ’s parent company Alphabet has issued a new quarterly financial report with revenue of US $ 41.16 billion in the first quarter, exceeding the market ’s forecast of US $ 40.29 billion.
However, even if Google ’s revenue in the first quarter exceeded expectations, the company stated that the second quarter ’s advertising business revenue will be hit by the epidemic, even saying that it will be a “difficult year”, affected by the advertising market The YouTube business is typical.
During the epidemic, theaters and entertainment companies suffered significant losses. For online streaming platforms YouTube and Netflix, although they have not been affected too much in terms of traffic and membership , And even increased by the epidemic. But in terms of revenue, due to different business models, the two streaming platforms also show significant differences.
Members and traffic increase separately, but advertising revenue becomes a hidden concern for YouTube
Since the outbreak, YouTube ’s news views have also increased significantly by 75% over the same period last year, with monthly views exceeding 2 billion views. Similarly, Netflix’s competitor, Disney’s streaming media platform, has grown considerably. It has won 50 million paying users in just five months of launch in the United States.
According to the first quarter of 2020 financial report released by Netflix a few days agoIn the first quarter, Netflix’s global paying subscribers increased by 15.8 million, far exceeding the company’s previous 7 million and analysts’ expectation of 8.47 million. As we all know, Netflix’s revenue mainly depends on member subscription revenue. The number of members in the first quarter increased by 15.5 million, and the cumulative number of more than 180 million members worldwide is undoubtedly a benefit to income.
But this situation is difficult for Youtube on the other side. Similar to the strategy of a domestic video platform to deal with viruses, YouTube is also launching hand washing videos, anti-epidemic education and other programs in the application. On the relevant information pages of YouTube health institutions, the number of views has exceeded 10 billion times, and the overall traffic growth is about 15% Around the same time, bloggers in various fields are constantly updating their content and are almost unaffected by the epidemic.
Even though the traffic keeps growing, during the epidemic period, YouTube ’s advertising revenue has also dropped significantly, and YouTube ’s revenue basically comes from advertising. The impact can be imagined. YouTube consultant Carlos Pacheco has revealed that since early February, the advertising rate of the 180 YouTube channels he worked with has dropped by an average of nearly 50%, and these channels have a total of nearly 68 million subscribers worldwide.
On YouTube, many small and medium-sized companies have almost stopped advertising campaigns. According to data from the Interactive Advertising Bureau (IAB) of the advertising industry agency, a quarter of media buyers and brands suspended all advertising in the first half of 2020, and another 46% of advertisers lowered their advertising expenditures.
The epidemic has caused the entire advertising market to be in a downturn. The revenue of bloggers in various UGC content fields has shrunk dramatically. A similar scenario last happened in the “Advertising Doomsday” scandal in 2017. A large number of advertisers have evacuated YouTube.
In contrast, although advertisers have greatly reduced their advertising, Netflix ’s membership subscription model is basically unaffected, and thanks to the reserve and subscription system of many high-quality original content, even during the outbreak, Netflix ’s revenue It is also relatively stable. With the promotion of home ownership, the number of members who have exceeded expectations has grown.
For a long time, Netflix has been an active benchmarking model for domestic long-term video platforms. From the perspective of revenue performance and risks during the epidemic, Netflix, which focuses on PGC copyright content, outperforms UGC-based YouTube.