In the integration of short and long videos, compliance is the way to go.
Douyin and iQIYI (Chinese: 爱奇艺, IQ:NASDAQ), as representatives of short and long-form video platforms, reached cooperation. iQIYI will license long-form video content from its content assets with network distribution rights and licenses to Douyin for short-form video creation.
The partnership has benefits for both sides. iQIYI can improve its profitability and lock in some of its copyright revenue in advance. Its Q1 earnings report released in May 2022 showed platform revenue of CNY 7.3 billion (USD 1.1 billion). Operating profit based on non-GAAP financial metrics was CNY 330 million with a margin of 4%, achieving quarterly profitability for the first time. For Douyin, it can resolve some of the copyright doubts and help to promote compliance operations.
However, the copyright dispute between short and long-form videos has been going on for a long time, the two sides have not yet reached a complete settlement.
China Television Arts Exchange Association, China TV Production Industry Association and other associations jointly stated with long-form video platforms and television companies in April 2021, calling on most short-form video platforms and public account production operators to respect originality and protect originality copyright. Infringements of the relevant film and television works should be banned.
Unauthorized editing of creative works is undoubtedly untenable. However, it is not advisable to eliminate short videos across the board because many of them play a promotional role for long videos.
Of the 975 million online video consumers, 873 million of them watch short videos, exceeding the size of integrated video users by 169 million. Short videos are excellent at capturing users' time and attract brand advertising budgets with their short, flat and fast creation features.
The business dilemmas of long-form video platforms are not solely caused by short-form video platforms. With an emphasis on reducing costs and increasing efficiency, both sides should work together to find a win-win solution. Licensed second creations can reduce piracy and promote a positive environment for the whole industry.
iQIYI's competitors include Tencent Video and Youku (Chinese: 优酷, YOKU:NYSE)