As a globally popularization video platform, Netflix has reduced the dominance of traditional TV companies and cinemas, driving the trend of streaming media, replacing the traditional forms of entertainment, and has had a significant impact around the world (Janner, 2018). In China, however, online video companies have gone through a number of waves of reshuffling and competition. The current market is dominated by video platforms iQIYI (Xiabing Li et al., 2022). Netflix and iQIYI embody different business models, reflecting different cultures and consumer concepts.

Content Publishing Strategy

Netflix’s ‘binge-watching’ format, which releases entire seasons of programming at once, appeals to audiences looking for instant satisfaction, giving them complete freedom to pace their viewing. This approach not only catered to changing viewer habits but also helped to popularize binge-watching as a standard practice in the streaming era. For example, when the fourth season of ‘Stranger Things’ launched in 2022, viewers across the globe raced to finish the entire season in just one weekend, sparking a massive amount of online discussion, fan theories, and emojis.

In contrast, it is rare to see one-off releases of episodes in China, with iQIYI predominantly using weekly releases. This structure reminds us of traditional television and reflects the collective viewing experience common in Eastern media cultures. The weekly release encourages ongoing viewer engagement but may lack the instant appeal offered by Netflix.

User experience and monetisation methods

For example, after the phenomenal costume drama Qing Yu Nian was launched on the iQIYI platform at the end of 2019, it not only set off a viewing boom in China, but also became the spotlight of attention for international viewers. The drama successfully combined the traditional weekly broadcast model with the innovative paid advance model, providing an important case study for iQIYI‘s content operation.

This controversial ‘超前点播’ value-added service requires that even VIP members have to pay extra to unlock unaired content in advance, and that people can only buy it on an episode-by-episode basis (China Daily website, 2021). This contrasts with Netflix’s emphasis on a seamless viewing experience with no additional subscription fees.

In May 2016, iQIYI announced a paid split model for online dramas, it was the first to occupy a major market of video sites in this model. The iQIYI online video cooperation-sharing model is divided into three major categories: content sharing, marketing sharing, and advertising sharing. The content share is mainly based on the amount of value-added service; the marketing share is the marketing and promotion share for the platform’s exclusive A and B films; and the advertising share is the share of advertisements obtained by the content side after the video is transferred from paid to be free of ads (Xiabing Li et al., 2022). Recently, this model was finally phased out after user feedback, which highlighted a potentially short-sighted approach to monetisation, whereby profitability can sometimes undermine user satisfaction and loyalty.

In summary

The differences between Netflix and iQIYI go beyond business strategy and touch on deeper cultural values and psychological aspects in their respective regions. It is still unclear whether the platforms will become more alike or continue to maintain their unique practices. This question arises in an increasingly globalized and fragmented media environment. The ongoing changes invite reflection on the relationship between technology, culture, and the shifting patterns of entertainment consumption.

Siqian Wang 33847063

References list

Jenner, M. (2018). Introduction: Netflix and the re-invention of television. In Springer eBooks (pp. 1–31). https://doi.org/10.1007/978-3-319-94316-9_1

Xiabing Li(李夏冰). (2022). Research on Business Model Strategy of domestic Video Websites Based on Blue Ocean Strategy—A Case Study of IQIYI. Modern Management, 12(04), 432–440. https://doi.org/10.12677/mm.2022.124059

China Daily website. (2021). “爱优腾”宣布取消超前点播. Chinadaily.com.cn. https://language.chinadaily.com.cn/a/202110/08/WS615fef58a310cdd39bc6d989.html