Chapter 1 - Webisode Distribution and Globalization Strategies of Video-Streaming Platforms: Taking iQIYI as an Example

Summary

Introduction

Set up in 2010, iQIYI was famous for its technical innovation and creative video content and was merged with Baidu Company in 2013. Listed on NASDAQ in 2018, iQIYI leads the market and has claimed to be China's Netflix (Pham 2018).

Webisodes, with a few new features in content, platforms and technology, shape a new ecology of online distribution. Initially, the content of videostreaming platforms (VSPs) came from purchased copyright, which became increasingly expensive, so VSPs turned to produce originals to attract subscribers.

With its large popularity, China is a potential VSP(s) market. However, due to state censorship, Netflix has not made its way into the Chinese mainland, so the Chinese market is shared by local VSPs, including iQIYI, Tencent Video and Youku.

Among these online video platforms, iQIYI leads the group by originals and also reflects how innovative strategies have shaped the ecology of Chinese VSP(s).

The popularity of iQIYI started with originals, which were similar to Netflix's House of Cards (2010). The 12-episode drama Time Raiders(2015), coproduced by iQIYI and Huanrui Century Union (with 5 million CNY for each episode), was launched, and members could get a sneak peek of the webisode (iQIYI Inc 2020). This resulted in a craze for viewing and explosive growth in paid users. By the end of 2015, iQIYI's paid members had hit 10 million for the first time (Frater 2020).

Therefore, focusing on iQIYI, we discuss the features of original creations and how they constructed basic laws for the creation of the VSP(s). In this way, we provide an indication of the innovation of VSP(s) in China, which greatly influenced the TV industry.

Besides, iQIYI has applied many audience strategies to improve the audience's loyalty. With combined membership interest, iQIYI is trying to improve audience interest in renewing their subscription. Cooperating with TV terminals, iQIYI has extended its platform to access more audiences. By technology application, iQIYI, powered by Baidu, analyzes user information, bringing interesting content to satisfy the viewing experience.

So, it is worthwhile to discuss what are the audience strategies of iQIYI so that we can know how VSP(s) thoroughly attract their audience.

In addition, VSPs have been seeking outward expansion in their development. iQIYI prefers creations with Chinese characteristics in the global market. For example, iQIYI internationalized its content and entered the Asia market in cooperation with Netflix and Sony.