China’s iQiyi ups investment in originals

MIPCOM: Chinese online video platform iQiyi is aiming to ramp up spending on original content, its chief told delegates here in Cannes.

Yu Gong

Yu Gong, founder and CEO of the VoD service, said he plans to turn the company into a “technology-based entertainment giant” and believes the key to that is creating and owning the IP.

Currently, iQiyi’s revenue is mostly generated by licensed content, but the strategy is to convert this into an original content model in the future.

Gong said original content has three key benefits over licensed material: it is often more differentiated, makes it easier to control content costs and is easier to monetise.

He added that advertising “seamlessly” embedded into iQiyi’s originals can “facilitate a more natural viewing experience.”

“Original content also has long-term value as it can be broadcast and monetised in multiple periods of its lifetime,” he said. “We can generate revenues from subscription fees in the first window and from ads in the second window for all users.”

Gong’s comments came soon after iQiyi announced it had agreed a deal with Viacom-owned Nickelodeon to develop the second season of its animated children’s series Deer Run. This is the first project of Viacom International Media Network’s new five-year initiative to boost animation coproductions in and with China.

Deer Run marked the first time Nickelodeon Asia took a Chinese original on its network from the conception phase. The first season of the 40×11’ series is in production and will premiere in the first quarter of 2020.

This is one part of a broad portfolio of original content offered by iQiyi, including variety shows The Rap of China and Clash Bots, and drama series Tientsin Mystic and Burning Ice.

Gong added that iQiyi intended to integrate artificial intelligence into its platform to provide “tailor-made content and intelligent recommendations to users.”

However, the exec did not mention iQiyi’s plans to battle IP infringement following accusations earlier this year that it had copied South Korean media firm CJ ENM’s format Produce 101.