iQIYI boosts ad revenue amid continued market dominance

iQIYI, China's leading online entertainment provider, reported sustained market dominance in its core content business during the third quarter. According to Enlightent data, its long-form dramas secured the top viewership market share, while its online movies remained in the market's top position for a 15th consecutive quarter. The platform also saw its innovative revenue-sharing model for films gain momentum, with new releases like A Cool Fish 2 generating over 18 million yuan ($2.47 million) in shared revenue within two months.

iQIYI's membership and advertising revenues grew on the back of its high-quality content. Membership services revenue increased by three percent, driven by original hit dramas and the theatrical blockbuster Ne Zha 2. Brand advertising revenue saw double-digit year-over-year growth, with over 60 percent coming from content-related ad solutions. The performance ads sector also achieved a more balanced advertiser portfolio.

The company's overseas business solidified its role as a key growth engine, with membership revenue surging over 40 percent year-over-year. Membership in markets like Brazil, Mexico, and Indonesia more than doubled. Concurrently, the experience business, centered on IP-based consumer products, saw its revenue more than double year-over-year, driven largely by collectible cards from popular dramas.

Additionally, technology initiatives with a focus on AI are being deployed across the platform. iQIYI launched a global AI short film competition with Google and ByteDance, and partnered with Oscar-winning cinematographer Peter Pau to pioneer an AI Theater. User-facing applications include "iQuickReel" for automatic short video generation and AI-powered tools to boost ad creativity and efficiency.