SINGAPORE, Dec. 4, 2019 /PRNewswire/ -- Dr. Gong Yu, Founder
and CEO of iQIYI, Inc. (NASDAQ:IQ) ("iQIYI" or the "Company"), an
innovative market-leading online entertainment service in
China, recently attended the
20th Asia Television Forum & Market ("ATF" or the
"Event") and delivered a keynote speech on iQIYI's service model
and growth strategy as a technology-driven entertainment platform,
as well as his outlook for the development of the Asian and global
entertainment industry.
"We believe that Asian culture is the next culture to become a
global phenomenon. Therefore, we hope that through internet and
technological innovation, iQIYI and its partners will be able to
promote Asian culture to more overseas audience and facilitate its
better, stronger, and healthier," said Dr. Gong in his speech at
the ATF.
As Asia's premier entertainment
content event, each year the ATF gathers industry leaders and
experts to share and exchange views on the latest about creating,
protecting and selling a format or content in the region. The
20th ATF kicked off in Singapore on December
3, 2019 and was attended by approximately 700 firms from
more than 55 countries and regions.
Dr. Gong's keynote was delivered as the opening speech for the
Event's leadership summit, a key segment of the Event that explores
the movements and outlook of Asia's content industry with key-decision
makers of influential entertainment industry companies.
Technological innovation as the drive of entertainment
development, using 5G+AI to create a new entertainment
experience
As China's leading
technology-driven entertainment brand, iQIYI provides daily
services to an extraordinarily large userbase. At present, iQIYI
has over 180 million daily independent active devices, an
accumulated daily average use time of over 350 million hours, and
more than 600 million monthly independent active devices. iQIYI has
also officially launched its overseas expansion by entering the
Southeast Asian market this year. Dr. Gong remarked in his speech
that he believes technological innovation is the driving force
behind the rapid development of the online video industry.
At iQIYI, AI technology has already been applied to PGC and UGC
production, user experience enhancement, as well as monetization
methods. With approximately 80
million devices simultaneously logging into the iQIYI system
during peak hours, the application
of AI technology allows the platform to service such a large
userbase effectively and allow the platform to run in a more
performance and cost-efficient manner. AI technology plays an
important role in the production phase of PGC. For example, reality
show footages are usually taken by 40 to 90 cameras on set,
producing an extremely large amount of footage for editing. AI
technology can automatically filter out unusable footage, helping
significantly shorten the time-consuming process of manually
selecting footage.
"The past two decades of the online video content can be summed
up through the act of simply transferring movie and TV content that
have existed for the past century or so onto the internet. No
revolutionizing innovation has been achieved in the online video
industry yet, but I believe that this is about to change," said Dr.
Gong in his speech. "With the development of technologies such as
5G and AI, I'm certain that content innovation unique to online
videos will appear in the future."
Establishing diversified business model with strong original
content matrix
With rapid growth, innovations and promising potential in
content development and business models, the Asian entertainment
market has increasingly been attracting international attention.
During the ATF, Dr. Gong gave audiences an overview of iQIYI's IP
ecosystem and its diversified business model.
iQIYI's platform provides its users with a wide array of
services including videos streaming, social networking and content
cooperation. The Company adopts the Subscription-based Video on
Demand (SVOD) model to provide paid members with premium content,
and uses the Advertisement-based Video on Demand (AVOD) for other
content. So far, iQIYI has successfully launched multiple popular
premium content productions including Tientsin Mystic,
Burning Ice, The Rap of China,
Hot-Blooded Dancing Crew, Youth and The Pluto Moment. These not
only helped attract different user groups for iQIYI, but have also
cultivated many talented young creatives and actors/actresses,
which has helped establish a solid foundation for iQIYI in content
production.
The IP ecosystem of iQIYI's not only meet the various needs of
users, but also enables the Company to maximize its revenue through
a diversified monetization model. Aside from video content, iQIYI
also provides various entertainment services such as literature,
comics, light novels, and ticket selling. According to the
Company's estimation, there will be four times more users of a game
if it shares the same name, genre and characters with a film or TV
show. iQIYI also estimates that in the future, around half of the
drama series will be adapted from novels, comics and light novels
in China. iQIYI has been fostering
a literary adaption ecosystem that combines literature, pictures,
videos and gaming, and extends the IP monetization function in
diversified ways such as adapting video content into official
licensed products or merchandise, and by adapting games into video
content. For the 2018 fiscal year, iQIYI's total revenues were
RMB 25 billion, of which 42% came
from membership services, 37% from advertising, and the rest coming
from content distribution and other revenues including novels,
comics, gaming and e-commerce.
iQIYI running three operating models to tap into
international markets and promote Asian culture through
technological innovation
With ongoing growth in content investment by operators of cable
TV and online video in the global market, the number of subscribers
in North America and China continues to break new highs while the
demand for streaming media in the Southeast Asian market is also
booming. Providing entertainment services to a global market has
become an irreversible trend for the future development of leading
video-streaming platforms.
In June 2019, iQIYI officially
launched its global iQIYI App and powered global operations through
three operating models, including operations by iQIYI's local team,
joint operations with local partners and an app system enabled SaaS
model. iQIYI is committed to strengthening international
cooperation across borders, having recently reached a strategic
partnership with Astro, a leading media platform in Southeast Asia. The collaboration will
capitalize on the advantages of both parties to provide
high-quality content and experience to local users in the region,
and launch a customized operations plan to cater for the Malaysian
market.
At the ATF, Dr. Gong expressed his wish for iQIYI to work
closely with more overseas partners in different ways in the
future. For example, under the SaaS model, iQIYI can provide
technical services to partners while partners can provide access to
local brand to jointly launch new media services. "The universal
popularity of Hollywood culture
could explain the rapid global expansion of Netflix, with
Hollywood culture at its core. The
next set of cultural values with a wide global reach are yet to be
seen," Dr. Gong remarked in his speech. "We believe that Asian
culture is the next culture to become a global phenomenon.
Therefore, we hope to gain access to international markets through
internet and technological innovation, either using our own brand
or local brand, to promote Asian culture to more overseas audience
and facilitate its better, stronger, and healthier
development."
About iQIYI, Inc.
iQIYI, Inc. is an innovative market-leading online entertainment
service in China. Its corporate
DNA combines creative talent with technology, fostering an
environment for continuous innovation and the production of
blockbuster content. iQIYI's platform features highly popular
original content, as well as a comprehensive library of other
professionally-produced content, partner-generated content and
user-generated content. The Company distinguishes itself in the
online entertainment industry by its leading technology platform
powered by advanced AI, big data analytics and other core
proprietary technologies. iQIYI attracts a massive user base with
tremendous user engagement, and has developed a diversified
monetization model including membership services, online
advertising services, content distribution, live broadcasting,
online games, IP licensing, online literature and e-commerce.
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SOURCE iQIYI, Inc.