What's Happening?
iQIYI, a leading online entertainment platform in China, has reported significant growth in its Experience Business during the second quarter of 2025. The company is leveraging its popular original shows and characters to create offline attractions and consumer IP products. This strategy includes the development of theme parks, such as 'iQIYI Land,' and the creation of collectible trading cards, merchandise collaborations, and immersive theaters. iQIYI's approach taps into China's rapidly growing IP derivatives market, which is projected to reach RMB202.5 billion (US$28.5 billion) this year. The company has successfully generated substantial revenue from its self-operated collectible trading cards and merchandise tied to popular shows.
Why It's Important?
The expansion of iQIYI's offerings beyond digital content represents a significant shift in the entertainment industry, highlighting the growing demand for immersive experiences and consumer products. This move allows iQIYI to diversify its revenue streams and strengthen its brand presence. By capitalizing on the popularity of its shows, iQIYI can engage audiences more deeply and create long-term connections. The success of this strategy could influence other entertainment companies to explore similar avenues, potentially reshaping the landscape of content consumption and fan engagement.
What's Next?
iQIYI plans to continue expanding its product categories and develop its own sales channels. The company is also constructing 'iQIYI Land' theme parks in Yangzhou and Kaifeng, with more locations to be announced. These developments are expected to enhance iQIYI's ability to offer unique experiences and attract more visitors. As the company bridges the gap between on-screen content and real-world experiences, it aims to create new revenue opportunities and deepen audience engagement.
Beyond the Headlines
The strategic expansion into theme parks and consumer products raises questions about the future of entertainment consumption. As digital platforms increasingly venture into physical experiences, the boundaries between virtual and real-world entertainment may continue to blur. This trend could lead to new ethical and cultural considerations regarding intellectual property rights and the commercialization of popular media.
