Tech: The Netflix of China?
Industry Focus
The Motley Fool
4.6 • 854 Ratings
🗓️ 11 May 2018
⏱️ 26 minutes
🧾️ Download transcript
Summary
Chinese video streaming company iQiyi is drawing some big comparisons, can it possibly live up to them? And might the company be interesting enough to make us break one of our investing rules?
Transcript
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| 0:00.0 | Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. |
| 0:07.0 | It's Friday, May 11th, we're talking about the Netflix of China. |
| 0:11.0 | I'm your host still in Lewis and I'm joined on Skype by fool.com's Danny |
| 0:14.4 | Vena. Danny we both love Netflix you as a shareholder me as a binger. It seems like |
| 0:20.6 | the streaming subscription model is something a lot of people can get behind and today we're going to be talking about a company in China that has taken note. |
| 0:28.0 | So you want to tee up what we're going to be discussing today? |
| 0:32.0 | Absolutely. tee up what we're going to be discussing today? |
| 0:41.5 | Absolutely. So I Chiyi, which was a spin-off from the Chinese Google, Baidu, they started off at strictly following the Hulu model. They began as a |
| 0:49.9 | company that used strictly advertising to generate the revenue, get as many |
| 0:56.7 | subscribers in the door as they could, but these people were not paying anything. |
| 1:02.1 | And it was fairly successful, but about 2015 or so, |
| 1:09.7 | Baidu recognized just how successful Netflix was becoming and as has been the case with so |
| 1:17.1 | many Chinese companies they saw a model that they like and they copied it and so they generated some new exclusive content |
| 1:29.2 | they stuck it behind a paywall they they encouraged users to, you know, sign up and pay, in their case about three |
| 1:38.2 | bucks a month and they've gone from there. |
| 1:40.8 | Yeah, and I'm sure that ICHEE appreciates the Netflix of China |
| 1:45.1 | parallels you know certainly when Matt Ardersinger was first talking about |
| 1:48.9 | this company that's that's how I first got wind of it and he used that as the pitch. I was immediately ears |
| 1:54.2 | perked up just because one the subscription model has been so strong for |
| 1:57.8 | Netflix retention has been so good and two it's it's just such a scalable model |
| 2:02.3 | you know you have something that serves people well, |
| 2:04.9 | and if you do it right and you, you know, |
... |
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