Dive into China’s growing streaming industry

(China Each day) Pushed by high-speed web connections and a thirst for on-demand content material, the streaming media business has witnessed explosive progress over the previous decade and spawned a collection of streaming giants resembling Netflix, Amazon Prime Video and Disney+.

With a couple of billion on-line video customers as of mid 2023, China boasts one of many world’s largest video streaming markets, in line with the 52nd Statistical Report on China’s Web Growth issued by the China Web Community Data Heart.

Dominating the panorama of China’s video streaming are iQIYI, Youku and Tencent Video, which additionally spearhead the sector’s fast progress that contributes to China’s high-quality growth.

On Feb 28, iQIYI, usually hailed because the Netflix of China, reported whole revenues of 31.9 billion yuan ($4.5 billion) for the 2023 fiscal yr, with key monetary metrics — whole revenues, working and web revenue, and whole free money move — hitting file highs.

With a dedication to content material creation, worldwide attain and cutting-edge applied sciences, China has grow to be a video streaming powerhouse and is shaping the way forward for leisure in Asia and past.

Content material is king

The cardinal rule within the content material advertising and marketing business holds true for video streaming platforms. Since its inception in 2010, iQIYI has been dedicated to producing long-form video content material and has grown to grow to be the go-to platform for Chinese language-language content material in China and past.

What content material resonates with Chinese language audiences and captures their hearts?

With a glimpse at iQIYI’s high 20 must-watch productions, you will discover that 9 are costume dramas. This exhibits that interval items which embody China’s wealthy historic narratives and oriental aesthetics maintain a robust attraction for Chinese language audiences.

Moreover, themes delving into up to date existence and social developments are capturing an growing viewership. Notably, topping the positioning’s chart is The Knockout, a contemporary drama which was a nationwide phenomenon in 2023.

The present together with different hit titles introduced iQIYI 17 million new subscribers and enabled the platform’s common day by day variety of whole subscribers to soar to a staggering 129 million for the primary quarter of 2023, which is about half of that of Netflix.

In the meantime, Chinese language audiences are additionally hooked on suspense-filled dramas resembling these featured in iQIYI’s “Mild on Theater” program, varied actuality exhibits and on-line movies.

“Month-to-month ARM (common income per membership) grew for 5 consecutive quarters, which mirrored the excessive attractiveness of our content material and the rising worth of our membership service,” stated Gong Yu, founder and chief govt officer of iQIYI, through the firm’s earnings name.

In accordance with Enlightent, a giant information platform for the leisure business, iQIYI has ranked No. 1 in drama viewership share for 3 consecutive years. In 2023, iQIYI broadcast seven out of the highest 10 most-viewed new dramas within the Chinese language market. Along with dramas, the large additionally dominated the web film streaming phase with a complete viewership share of 47 %.

“Our market share management is deeply rooted in our distinctive capability to provide authentic, premium content material,” Gong remarked.

In 2023, greater than 65 % of key dramas launched by the platform have been its authentic productions, an annual file in its historical past.

Unleashing larger IP worth

Along with creating premium authentic content material, Chinese language streaming giants are additionally good at creating blockbuster spin-offs to additional amplify their worth, bringing thrilling expertise throughout on-line and offline channels.

For instance, iQIYI developed the iQIYI Chinese language Historic Metropolis Universe—an expansive universe of varied Chinese language historical cities featured in its hit costume dramas.

Primarily based on Luoyang, a 2021 sensational historic thriller collection, the corporate launched the primary installment of the universe and monetized by means of Luoyang-inspired spin-offs together with movies, video games, merchandise and VR immersive theater.

International presence

Just like Netflix’s international enlargement, China’s main video streaming firms look past the borders of China.

With a deal with creating beloved Asian content material and bringing it to the world, iQIYI launched its worldwide app in 2019, distributing hundreds of episodes of TV dramas, selection exhibits, documentaries and over 500 movies in additional than 190 international locations and areas.

2023 noticed Chinese language dramas proceed to enthrall international audiences and advertisers, as they contributed greater than 50 % of whole revenues in 2023 for iQIYI Worldwide, in line with the corporate’s earnings report.

“Story of Kunning Palace led rankings in lots of markets, setting file excessive metrics for Chinese language content material on our abroad platform. In the meantime, A Journey to Love additionally dominated many charts in South East Asia, North America and Australia through the broadcasting interval,” stated Gong.

Moreover, the corporate has been creating authentic productions in Southeast Asian languages for native markets and distributes them worldwide.

Rampas Cintaku, a Malay-language drama, is a main instance. The 2022 hit present has enthralled a worldwide viewers with over 100 million views. iQIYI lately debuted the Malaysian drama within the Chinese language mainland, additional spreading its attraction past its house turf.

Gong stated that in 2024, his firm will proceed selling Chinese language dramas and native content material in partnership with Southeast Asian TV stations, and search various IP monetization alternatives.

Embracing cutting-edge applied sciences

An business pushed by technological developments, China’s video streaming sector has proven large drive in adopting rising applied sciences to empower content material creation and advertising and marketing in addition to enhance consumer expertise.

For instance, iQIYI has pioneered digital manufacturing in utilizing its digital belongings, resembling 3D scanned set areas of its authentic productions, to create varied varieties of content material, starting from dramas and movies to animations. In accordance with the corporate, this know-how was used to seize over 3,000 minutes of footage for The Story of Mystics, a fancy dress drama by iQIYI.

Leveraging Generative AI, the corporate assists content material creators in higher evaluating scripts and helps advertising and marketing groups generate movies and posters.

“These efforts not solely enhance content material manufacturing and operation effectivity, but in addition unleash artistic potentials,” Gong remarked. “Over the previous yr, we used AI for mass-producing high quality advertising and marketing supplies, which outperformed handbook designs in click-through charges and viewership.”

Moreover, iQIYI’s AI search capabilities, which may comprehend video content material at minute degree and generate detailed plot summaries for every playlist, guarantee viewers can immediately entry desired content material. The corporate’s interactive options permit customers to ship bullet screens, chat and even sing karaoke.