(Yicai Global) Jan. 12 -- iQiyi has made it more expensive to watch 4K high-resolution videos on the Netflix-style platform.

To watch videos in 4K, iQiyi users need to subscribe to Platinum VIP membership for an annual charge of CNY198 (USD29), whereas they could do that before with the CNY118 Gold VIP plan. Gold members can now only watch videos in 480 pixels resolution.

Beijing-based iQiyi has not commented on the move yet, but profit was the chief motive, Liao Xuhua, a senior consultant on the culture and consumption sector at market consultancy Analysys, told Yicai Global. Earlier price hikes gave the company sufficient data and experience of such changes, Liao added. 

IQiyi increased its fees a number of times in the past two years, with the cost of consecutive monthly membership jumping to CNY25 (USD4) from CNY15 in November 2020. 

Many users questioned its decision to raise rates and implement a stricter account review process when logging in on multiple devices in December. Higher fees were introduced to boost investment in high-quality content, let creators get more in return, and form a more benign industry ecology, iQiyi said to Yicai Global at the time.

The impact of higher fees was reflected in iQiyi’s financial results. Revenue from membership services fell 2 percent to CNY4.2 billion (USD621.6 million) in the third quarter of 2022 from a year earlier, its earnings report showed, after dropping 1.7 percent in the second quarter.

But the firm’s net loss shrank to CNY396 million (USD58.6 million) in the three months ended Sept. 30 from CNY1.7 billion in the same period of 2021, thanks to the expense reduction strategy.

Chinese video site Youku also increased the price of high-res streaming by CNY12 in the second half of last year, while paying members on other platforms, including Mango TV, Tencent Video, and Bilibili, saw no changes to plans allowing for higher picture quality.

Editors: Shi Yi, Martin Kadiev