BEIJING, Oct. 8, 2021 /PRNewswire/ -- iQIYI, Inc.
(NASDAQ:IQ) ("iQIYI" or 'the Company'), an innovative
market-leading online entertainment service in China, announced today that Gong Yu, Founder
and CEO of iQIYI, participated in the China Film Development Forum
of the 11th Beijing
International Film Festival (BJIFF). At the forum, Gong shared his
insights into the changes that the Internet has brought to the
production, distribution, and business models of films and TV in
China, highlighting the value of
the technology-driven industrialization.
According to Gong, the Premium Video on Demand (PVOD) and the
Subscription Video on Demand (SVOD) models of online film
distribution will spur two distinct film markets that cater
specifically to each model. Meanwhile, technological innovation
remains crucial to the industrialization of film and television
because it reduces costs and enhances the audiovisual experience,
thereby improving the investment returns and the probability of
success.
SVOD and PVOD to form different markets
In the past year, iQIYI has distributed more than a dozen films
through the PVOD model, providing users with flexibility while also
furthering the development of the model itself. In mid-May of this
year, iQIYI unveiled the Cloud Cinema, an online film transaction
platform that leverages the Company's extensive partnerships within
the film industry and helps create a viable 2C business model for
content creators.
As the PVOD model matures, Gong believes that future online
distribution of films will be split into two phases. The first
phase will see the audience choosing to watch films under the PVOD
model. In this phase, the business model of streaming platforms
will be the same to that of the cinema's, with streamers and
producers sharing the revenue based on actual online box office
takings. In the second phase, which corresponds to the SVOD model,
streaming platforms will either strike a flat fee or buy-out deal
with producers at a fixed price or strike a so-called guarantee
deal where producers receive a minimum guarantee payment with
backend bonuses or a share of box office if the film's box office
performance exceeded the base-case scenario. Gong believes that
different films will emerge to cater to the two business models,
and the variety will be a boon to the film industry. Regardless of
the model, Gong reiterated the need for producers to fulfil the
basic requirements of advancing technological innovation and
ensuring copyright protection throughout the development
process.
Technology-driven industrialization of film and television
production is rewriting industry rules
At the iQIYI World Conference 2021 held in May, Gong repeatedly
spoke about film industrialization, a key concept that will guide
iQIYI as the Company continues to break through the boundaries
embedded in the traditional film industry. "Thanks to 5G, AI, cloud
computing, and other foundational capabilities, technological
innovation will underpin the rewriting of industry rules," Gong
said then.
At the BJIFF forum, Gong again emphasized the importance of film
industrialization, citing three main benefits. First, it involves
cutting-edge technologies such as AI and big data, which improve
the stable improvement of investment returns by allowing for better
management of resources. Second, the application of technological
tools in the production process helps reduce risks, assure film
quality, and raise the success rate of medium-budget and
high-budget films. Third, as technologies such as virtual
cinematography and AI-based production pick up, they can help
enhance the video viewing experience and reduce time spent on
production and associated costs while bringing value to the
industry's future development.
When speaking of promoting the industrialization of film and
television, Ya Ning, President of iQIYI Pictures, highlighted the
Company's "Full Investment and Full Control" model. Under this
model, Internet film companies such as iQIYI Pictures are producing
theatrical films which can further promote the industrialization of
films. For example, Break Through the Darkness, the first
film presented by iQIYI this year, has achieved a box office of
RMB 400 million and received
widespread acclaim, which is the best proof that such a strategic
direction is gaining market recognition.
In addition to offline film viewing, the 11th BJIFF
also launched an online film screening that lasts from September 15 to October 8. As the official
exclusive HD online video platform and exclusive partner of
" Online BJIFF", iQIYI created an exclusive content library
for the festival. The section features ten themes and over 100
films of various genres from China
and abroad, allowing film fans to enjoy the world's best content
anytime, anywhere.
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 and online literature.
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