BEIJING, April 1, 2022
/PRNewswire/ -- iQIYI, an innovative market-leading online
entertainment service in China,
announced on Apr.1 that it will upgrade its collaboration model for
online film distribution starting today. The new model includes two
distribution models, Cloud Cinema Premiere and Subscription
Premiere. Films released under the Cloud Cinema Premiere model will
generate revenues from both the Premium Video on Demand (PVOD) and
Subscription Video on Demand (SVOD) models of streaming. Meanwhile,
for films released under the Subscription Premiere model, the
revenue shared with film producers will be determined by users'
viewing time alone, rather than according to the different fee
category classifications iQIYI had assigned to individual
films.
Previously, films were first classified and graded before
premiering online, with the shared revenue and promotion support
for each film varying according to the classification. The new
collaboration model launched by iQIYI represents a complete shift
from film classifications, a move designed to ensure equal
distribution support for all films before their premiere. As the
films come online, iQIYI will allocate promotional resources
according to viewing time and user reviews, thereby improving
promotional efficiency.
The upgraded model helps initiate a Direct-to-Consumer (DTC)
model in China's film and
television industry. For both streaming platforms and content
creators, the DTC model is not just a new revenue stream, but it
also represents an inevitable developmental trend as the film and
television industry continues to head towards sustainable growth
and business model optimization. The DTC model incentivizes
filmmakers to make movies that can capture viewers' initial
attention but are also of a high enough quality that viewers are
compelled to finish the films. In this sense, the DTC model helps
align the interest and risk between the producers and video
platforms, encouraging the two parties to work more closely
together to create quality content, boost revenue, and help build a
fairer media ecosystem.
YANG Xianghua, President of Movie & Overseas Business Group
(MOG) of iQIYI said: "We are committed to continue building an
internet-based online film trading platform, where a more mature
business model can help drive box offices. Our aim is for
internet-based film watching to ultimately become a second
pillar—alongside movie theatres—that drives development and growth
in China's film industry."
According to the China Internet Network Information Center
(CNNIC), the size of online video viewers in China had reached 975 million in 2021. As the
global film industry actively looks for new growth driver, the
commercial success of the over 20 titles released through the iQIYI
Cloud Cinema Premiere model speaks to its immense market
potential.
iQIYI took the lead among Chinese video streaming platforms in
exploring the PVOD model by introducing a new avenue for film
distribution for the entire industry. In 2021, nine films,
including Dreams of Getting Rich and Northeastern
Bro, were released on iQIYI platform through the PVOD model.
The number of viewers paying to watch these movies under the model
shows its value. Popular film Double World achieved an
unrivaled box office of RMB 42.62
million within 72 hours of its release, breaking the revenue
record at that time for paid online movie premieres.
As China's online film market
continues to develop, iQIYI expects that streamers will create
transaction platforms that are accessible to content creators, the
pricing right stays with the filmmakers, and promotion resources
will be allocated based on viewers' preferences.
CONTACT: iQIYI Press, press@qiyi.com
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SOURCE iQIYI