At the Asia TV Forum (ATF) 2014 conference, Ma Dong’s session on ‘Digital China: The New Storyteller – IQIYI’, saw him share details about IQIYI’s position in China’s digital world, and the company’s journey to success.
He said, “IQIYI has grown steadily over the years, and our achievements attest to the strategic thinking and foresight of various leaders within the company. We are very pleased with our success, and look forward to further expansion in the years ahead.”
With over 450 million internet users and a growing middle class in China aiding its business, IQIYI has grown from strength to strength to now become one of the country’s leading online television and movie portals. To further cement its leadership position in the rapidly growing China online film and TV market, the Baidu subsidiary plans to step up its efforts in 2015, making seven local films, one Hollywood film and producing 500 (15,000 hours) internet dramas. The company is looking to spend at least 300 million yuan to produce its own content.
“A lot of things have changed in the past decade on the online space in China. Hundreds of online platforms have now been consolidated into just a few dozen now, which is also good in a way as it reduces clutter in the market and gives better monetising opportunities,” Dong expounded.
IQIYI’s daily reach is about 90-100 million people and 120-130 million devices. In Q1 2014, among the Top 50 Baidu Hit Dramas, 46 per cent are not from domestic TV channels, but American, Korean and web dramas. In April it increased to 53 per cent.
In 2011 and 2012, some top TV drama VOD license fees reached as high as RMB 1 million ($160,000) per episode. Dong believes that as licenses have durations, IQIYI would produce its own content.
Starting from 2013, VOD sites began original production, with clicks reaching new highs due to the relevance to daily life and funnier content. Dong regards 2014 as the self-production-boom year and this will further grow in 2015.