iQIYI, Inc. is an innovative market-leading online entertainment service in China.
They are at the forefront of the entertainment industry in China. iQIYI's platform features popular original content, as well as a comprehensive selection of professionally-produced and partner-generated content. Through their curated premium content, they are able to attract a massive user base with high levels of user engagement to generate significant monetization opportunities.
iQIYI has a strong track record of producing blockbuster original content. In 2017, according to the iResearch, their original content accounted for 5 of the top 10 original internet variety shows and 6 of the top 10 original internet drama series in China based on each title’s peak monthly active users. The Lost Tomb (盗墓笔记), one of the first high-budget original internet drama series in China that was released in 2015, generated more than 100 million video views within the first 24 hours of its debut and over 4 billion video views in total. They also pioneered and produced a number of successful internet variety shows, such as Qipa Talk (奇葩说), which was released in 2014 and is currently in its fourth season, and The Rap of China (中国有嘻哈), each of which generated over 3.0 billion video views.
Equipped with deep-learning predictive algorithms and massive user data, iQIYI has developed tools to select and provide third-party content to based on user's preferences. During 2017, according to iResearch, iQIYI featured 42 of the top 50 most popular drama series, variety show and film titles streamed on the internet in China based on each title’s peak monthly active users. iQIYI's comprehensive content library caters to the diverse tastes of the users and cultivates the potential of emerging content providers. The growing network of partner accounts provides iQIYI with high-quality partner-generated content. This network also enables thousands of content providers to distribute content effectively and monetize their followings through revenue sharing arrangements.
One of iQIYI's main competitive advantages in the online entertainment industry is its technology platform powered by advanced AI, big data analytics and other core proprietary technologies. These core proprietary technologies are critical to producing content that caters to user tastes, delivering a curated entertainment experience to users, while also improving operational efficiency, increasing the return on investment for advertisers and monetization opportunities for content providers.
iQIYI's diversified monetization model captures various opportunities arising from the rapid growth of the online entertainment industry in China. Revenues are generated through membership services, online advertising services, and a suite of IP-related monetization methods, including content distribution. iQIYI pioneered a large scale paid content subscription business in China. They appeal to advertisers through broad and efficient user reach, as well as effective and efficient advertising products. This multi-channel monetization model fosters an environment for quality content production and distribution on the platform, which in turn expands iQIYI's user base and increases user engagement.