This article is by: CNBC
Read more about it here: Chinese streaming giant iQiyi is planning out an original movie business
An excerpt from CNBC:
Often compared with Netflix, Beijing-based iQiyi became the biggest Chinese company since Alibaba’s public offering to list in New York last year. The video streaming company offers both paid and free content such as Youtube is currently doing. iQiyi, which is majority-owned by Baidu, ranks second in China’s video streaming market in terms of online video subscriptions, with Tencent’s video platform taking first place.
CEO Gong Yu told CNBC in an interview last week that the company’s near-term priorities are producing original content and incorporating artificial intelligence. And in that drive for original material, iQiyi is focusing on movies, he said. “We plan to spend the next two to three years to see whether we can innovate in this industry,” Gong said. “In other words, in the future, the leading top movies on iQiyi will be original productions by iQiyi. The first window of opportunity is still to screen them in movie theaters. The second window of opportunity is to show them on iQiyi, so as to maximize the total revenue.” But Gong said he expects it will take more than five years in order for the technologies to produce content that is clearly different than what is available today. “Deep learning allowed AI technology to explode commercially at one go in 2017, so we have just started AI technology,” he said. “Maybe in the next 8, 10, 15 years, we may enjoy the changes brought by AI technology.”
China has rapidly grown into one of the largest markets for movies in the world, raking in $9 billion last year and placing second only to North America at $11.9 billion, according to the Motion Picture Association of America. Tencent Video and iQiyi have just over 530 million monthly active users each, according to Questmobile. Last week, eiQiyi unveiled over 270 new projects at its annual conference in Beijing.
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