Recently, the "iQIYI casting restriction case" that lasted for more than a year has come to a conclusion. The court's first-instance judgment ruled that iQIYI should compensate the plaintiff with 41 days of gold member VIP duration. However, netizens have mixed opinions about this result. Some netizens said, "Thank this loyal fan for standing up for their rights, providing more reference for everyone whose interests have been infringed," but some netizens are not satisfied with this result, with one netizen asking, "It took a year to review, and this is all the compensation?"

1. iQIYI was ordered to compensate 41 days of gold membership

According to media reports, the netizen who sued iQIYI can be considered a "loyal fan" of iQIYI. They have been a member of iQIYI since 2017 and have been a gold VIP member for 5 years. However, last year, the netizen found that the casting function, which could previously select clarity as usual, had been restricted. Gold VIP members could only choose 480P clarity, and if they wanted to enjoy higher clarity when casting, they would need to upgrade to a higher-level membership. Therefore, the netizen sued iQIYI.

Now, although the netizen won the lawsuit and received compensation, they posted on social media, saying, "I hope iQIYI can treat all affected members equally."

Image source: Weibo screenshot

This incident and the netizen's post resonated with other netizens. In fact, in recent years, iQIYI's membership rights and membership fees have been repeatedly criticized by netizens. Not long ago, iQIYI was trending on social media for charging for an offline concert online, which was criticized by many fans as "unappealing." Earlier this year, a netizen posted on social media that iQIYI's Express version membership and regular version APP were not interchangeable, which was difficult to understand. Even earlier, iQIYI's removal of the membership benefit transfer function, adjustment of membership prices, and restriction on simultaneous login devices also sparked discussions.

Image source: Weibo screenshot

As for being sued by members, it's not the first time for iQIYI. In 2020, due to paid early access, an iQIYI member sued iQIYI, and ultimately, the court found that iQIYI's "paid early access" constituted a breach of contract and ordered iQIYI to continue providing the original membership benefits to the member.

2. How deep are the tricks of video platforms?

In fact, not only iQIYI, but several major domestic video platforms have not been able to escape criticism from netizens. Not long ago, during the popular broadcast of "Mo Yu Yun Jian," Youku was criticized for requiring SVIP on top of VIP, trending on social media. It is reported that SVIP can enjoy the benefit of watching and casting 6 hours earlier than VIP, and Youku's move was questioned by netizens as cutting off the original VIP membership benefits. When "Mo Yu Yun Jian" reached its finale, Youku introduced a service that required a separate payment of 24 yuan to watch the last 4 episodes and spin-offs in advance. From VIP to SVIP to separate payments, Youku was criticized as being both unreasonable and expensive.

Image source: Canned stock library

Previously, Tencent Video has also sparked controversy. During the popular broadcast of "Qing Yu Nian," some netizens complained that they needed to upgrade from VIP to SVIP to watch an additional episode, and even as Tencent Video members, they were forced to watch a lot of advertisements. In response, Tencent Video's customer service explained that after the increase in episodes, VIP members can watch normally, and regarding advertisements, members only receive a partial reduction. In addition, in 2019, Tencent Video was sued for discrepancies between its promotions and actual conditions, and ultimately, the court found the "Russian doll" clause invalid and ordered Tencent Video to compensate the plaintiff for economic losses.

Image source: Weibo screenshot

Mango TV has been criticized by netizens mainly for having too many advertisements. In addition to a few seconds of opening screen advertisements, some netizens said that Mango TV also has pop-up advertisements and mandatory advertisements for members, and it is even easy to accidentally trigger jumps. On the Hei Mao complaint platform, there are also multiple complaints from netizens about Mango TV not notifying before automatic renewal and still being charged even when automatic renewal has been turned off.

3. Gain profits but lose public trust?

Why do video platforms have so many tricks? Profitability may be one reason. Financial reports show that from 2019 to 2022, iQIYI was in a loss state and only started to profit last year. One of the important reasons for iQIYI's profitability may be membership fees. According to the 2023 financial report, membership service revenue accounts for more than 60% of iQIYI's total revenue. The iQIYI APP shows that currently, iQIYI offers three membership packages: Gold VIP, Platinum VIP, and Star Diamond VIP. Among them, Gold VIP can be used on mobile phones, computers, and tablets and can be played simultaneously on two devices. Platinum VIP has the same benefits as Gold VIP but adds functions that can be used on TV. Star Diamond VIP, based on Platinum VIP benefits, increases the number of devices that can be played simultaneously to 3. The annual prices for the three memberships are 238 yuan, 348 yuan, and 448 yuan, respectively.

Image source: Baidu screenshot

Youku is also in a loss state. According to Alibaba's financial report, in the first three months of 2024, the revenue of Alibaba's entertainment group decreased year-on-year, and losses were reduced. It believes that this is mainly due to the decline in Youku's revenue and the narrowing of Youku's losses.

In addition, Pan Helin, co-director and researcher of the Digital Economy and Financial Innovation Research Center at Zhejiang University's International Business School, told Southern Metropolis Daily that casting restrictions are partly due to copyright issues and partly to facilitate the formation of isolation between iQIYI's TV members and mobile members. This allows iQIYI to better sell higher-level membership packages.

Image source: Canned stock library

At the same time, the rise of short video platforms like Douyin and Kuaishou has also affected the development of long video platforms to a certain extent. Short video platforms have taken away some traffic and members from long video platforms, prompting long video platforms like iQIYI to accelerate their pursuit of profits and cost reduction and efficiency enhancement.

Although restricting casting and "Russian doll-style" charging can increase platform revenue, it has already caused dissatisfaction among consumers. Compared to revenue, regaining public trust seems more difficult. What do you think about this? Welcome to leave your comments and discuss in the comment section.