I. Industry Risk Analysis

(1) Policy Risk

The paid video industry currently faces the risk of periodic policy adjustments: During the policy – making stage, regulatory authorities strengthen legislation on issues such as content copyright, user privacy, and the protection of minors (e.g., the “Regulations on the Administration of Online Audio – Visual Information Services”). Entrepreneurs need to continuously track changes in compliance standards such as algorithmic push and content classification. There is a risk of fluctuations in law – enforcement intensity during the policy implementation stage. For example, sudden content removals and high – value copyright fines can lead to a sharp increase in compliance costs. There may be an impact on the profit model during the policy evaluation stage. For instance, the pricing of membership subscriptions may be subject to anti – monopoly investigations, and virtual gift rewards are included in the tax supervision scope of the entertainment industry. Although policies are relatively stable during the recession period, the industry access threshold has significantly increased. Startup teams need to bear rigid investments such as pre – safety assessments and the construction of content review teams.

(2) Economic Risk

The economic risk faced by the paid video industry lies in the fact that during an economic downturn, users’ willingness to consume weakens, subscription growth slows down, and there may even be a wave of cancellations. Currently, with the peak of the traffic dividend and the homogenization of content, the customer acquisition cost continues to rise, squeezing profit margins. Coupled with the contraction of advertisers’ budgets under economic cycle fluctuations, the demand for customized services from B – end enterprises is also weak. Entrepreneurs need to be vigilant that high – value copyright purchases and investments in self – produced content cannot match the growth rate of membership revenue. After the cash flow is under pressure, it is easy to fall into an imbalance of debt leverage. In addition, mid – and long – tail platforms are more vulnerable to the impact of industry giants during an economic recession. The concentration of users towards the top will accelerate the reshuffle of the industry.

(3) Social Risk

Generational consumption differences lead to the risk of user stratification in the paid video industry: Generation Z prefers fragmented free content and instant gratification, and their willingness to pay continues to weaken. Millennials and Generation X have higher requirements for content quality, but their ability to pay is squeezed by the economic downturn. The baby – boomer generation has weak digital consumption habits and is difficult to convert. It is difficult for the content side to balance the generational aesthetic gap. The cultural deconstruction of new – generation creators is likely to trigger ethical disputes, and an aging society gives rise to the cost of age – friendly transformation. The algorithmic cocoon room exacerbates the generational cognitive divide. Platforms need to not only deal with the value – based confrontational reviews of young users but also be trapped in the risk of regulatory lag in the silver – haired market. The tearing of diverse demands increases the operating cost and policy uncertainty.

(4) Legal Risk

Entrepreneurs in the paid video industry face three legal risks: copyright compliance, data privacy, and payment security. Unauthorized use of film and television resources may lead to high – value infringement compensation. Improper handling of sensitive data such as users’ viewing records and payment information will trigger penalties under the “Personal Information Protection Law”. Vulnerabilities in third – party payment interfaces or design flaws in the prepaid model may cause users’ property losses and lead to class – action lawsuits. The lack of a content review mechanism may result in the spread of illegal audio – visual programs, facing the risk of license revocation. If the membership renewal terms are not clearly publicized, it is suspected of violating the automatic deduction regulations of the “Consumer Rights and Interests Protection Law”.

II. Startup Guide

(1) Suggestions on Startup Opportunities

Entrepreneurs in the paid video industry can focus on vertical and segmented fields to explore high – value content gaps. For example, niche vocational training (certification for live – streaming sales mentors), regional dialect short dramas (content for dialect culture inheritance), and immersive interactive education (3D anatomy courses for medical students) are all differentiated tracks. Combine AI – generated technology to quickly test and develop content at low cost. Focus on channels where young users gather, such as TikTok and Discord. Establish a paid – membership community to strengthen users’ sense of belonging. Use blockchain technology to confirm content copyright and make revenue sharing more transparent. At the same time, develop a cross – platform intelligent recommendation system to accurately reach the target customer group, and use API interfaces to aggregate and analyze multi – platform subscription data.

(2) Suggestions on Startup Resources

Entrepreneurs in the paid video industry should focus on obtaining differentiated content resources and building technology platforms. Prioritize the integration of high – quality copyright partners and independent creator resources, and reduce the initial content procurement cost through a revenue – sharing model. It is recommended to use lightweight SaaS services to build a technology center and choose the elastic payment – by – traffic plan of cloud computing service providers to control IT investment. Allocate funds mainly to the content production link, and use the user prepaid subscription system to build a positive cash flow. Pay attention to the in – depth development of user data resources, use AI recommendation algorithms to improve the payment conversion rate, and build a multi – channel distribution matrix (secondary creation of short videos + live – streaming guidance + social media promotion) to amplify the content dissemination potential. During the startup process, it is necessary to maintain the dynamic iteration ability of core resources (exclusive IPs, user profiles, distribution channels) and be vigilant against over – concentration of resources on a single platform or copyright holder.

(3) Suggestions on Startup Teams

Entrepreneurs in the paid video industry need to build a core team with compound capabilities in content operation, technology development, and copyright management. Prioritize technical partners with experience in streaming media architecture, algorithmic recommendation, and IP negotiation. Form a lean team of no more than 10 people and implement dynamic equity incentives (technical backbones should hold no less than 30% of the shares). Conduct weekly data reviews of A/B tests, and focus on cultivating the team’s ability to predict policy regulations (e.g., set up a full – time policy researcher position). Bind key talents through quarterly gambling agreements, and require founding members to have cross – departmental collaborative development capabilities (e.g., product managers need to master the operation of the DRM digital rights management system).

(4) Suggestions on Startup Risks

Entrepreneurs in the paid video industry should first establish a compliant copyright review mechanism, sign authorization agreements with formal copyright holders, and use blockchain evidence – storage technology to ensure the legality of content and avoid infringement risks. Achieve accurate targeting through the user profile system, and combine strategies such as short – video previews and tiered membership benefits to reduce the customer acquisition cost to 70% of the industry average. On the technical side, deploy a DRM digital rights protection system, adopt anti – crawler solutions from Alibaba Cloud or AWS, and conduct penetration tests weekly. Content creation should establish a “data + screenwriter” dual – driven model. Capture hot trends through public opinion monitoring tools, update more than 20% of the original IP library quarterly, and launch innovative forms such as interactive dramas and VR companion broadcasts for Generation Z. Implement a prepaid revenue – sharing model for financial control, control content procurement costs within 35% of revenue, and simultaneously expand derivative revenue channels such as brand co – branding and knowledge payment.