China’s online video industry is going through a transition phase from the early stage to the later stage. One sign of this maturation is the high cost of famous talent in China, which has led companies like iQiyi, Tencent, and Youku to sign agreements to limit excessive remuneration for high-profile stars. This is an example of bargaining power over suppliers. Many venture capitalists and backers who supported other famous Chinese “Tech Wars” are also involved in the online video industry, indicating their belief in its rationalization.
The lack of interest in Chinese tech, the fact that iQiyi is an unprofitable foreign company, and the fear around anything Chinese during a time of trade war rhetoric and the release of the documentary “China Hustle,” contributed to a broken IPO with shares trading down -15% from the IPO price.
Presentation summary generated by ChatGPT