BABA(US:BABA) Hua Xia Shi Bao·2025-12-25 04:17Core Viewpoint - The introduction of the EPI (Effective Play Index) rating system by Youku aims to transform the traditional fixed-fee model in the film and television industry into a performance-based incentive structure, linking revenue to audience feedback and actual viewing data [1][2][3]. Group 1: EPI Rating System - Youku will gradually implement the EPI rating system for its series projects, providing incentive bonuses based on the series' performance after airing [1][2]. - The EPI is a value assessment metric that reflects a series' performance on the platform, considering factors like internal ratings and revenue [2]. - The new model allows for unlimited bonuses based on a series' success, encouraging the creation of high-quality content [2][4]. Group 2: Industry Response and Trends - Other platforms like iQIYI and Tencent Video are also adopting similar performance-based models, indicating a shift in the industry towards shared risk and reward mechanisms [1][6]. - The recent adjustments in revenue-sharing mechanisms are largely driven by national policy directions advocating for quality content and user-centric incentives [3][7]. - The new EPI model is expected to rebuild trust between platforms and content creators, moving away from traditional models that often led to subpar productions [3][7]. Group 3: Challenges and Opportunities - The shift to performance-based incentives may increase financial pressure on content creators, particularly smaller production companies, due to delayed revenue recognition [7][8]. - The EPI model provides a quantifiable guideline for creators, allowing them to optimize content strategies based on audience feedback and market potential [4][7]. - While the new model may create short-term financial challenges, it encourages a focus on quality and user value, potentially reducing the production of low-quality content [8].