Iqiyi, Inc. (NASDAQ:IQ)

BEIJING, March 25, 2020 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, recently launched the operation plan for its service experience testing stations (the "Testing Stations") in multiple international markets. The first Testing Station started its trial in Singapore at the end of 2019 and has been in testing and providing feedback to the Company on service experience. Similar Testing Stations in other markets including Thailand, Vietnam, the Philippines and Indonesia have been under preparation and will be launched in due course.

"Setting up service experience Testing Stations in local markets allow us to better adapt to local network and technological environments," said Ye Tao, Vice President of iQIYI. "These Testing Stations will not only help iQIYI better understand the local market, but it will also strengthen our experience in dealing with area-specific scenarios or issues, an essential component in the further localization of our services."

At present, terminals that are compatible with the Testing Stations include TVs, computers, and smart phones, while functions being tested by the Testing Stations include app opening speed, as well as the performance of video streaming, playback and search features. The testing method consists of iQIYI installing a variety of mainstream devices in the Test Station and connecting those devices to different local operators' services respectively. This allows iQIYI to test the experience of its services in different local network environments and devices.

For example, for the Singapore region, iQIYI engineers have been able to analyze and compare the performance level of streaming popular content between peak and normal hours in the different network environments of M1, StarHub, Singtel and other operators by combining the Company's self-developed framing data platform and an API monitoring system.

In June 2019, iQIYI officially launched the iQIYI App (International Version) and initiated global operations through establishing localized teams and partnerships and adopting SaaS models that empower its operating systems. iQIYI has been in cooperation with Astro, Malaysia's leading media brand, to localize services and meet the market's needs. By launching a Testing Station in Singapore with plans to roll out Testing Stations in other various markets, iQIYI can optimize its local product services through model testing and technical analysis. This will enable the company to acquire an accurate understanding of its services capabilities and products experiences in local markets and thereby provide better services.

BEIJING, March 16, 2020 /PRNewswire/ -- Recently, iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, together with Peking University and Microsoft Research, jointly published a paper on EPASS360, a newly-developed panoramic video streaming media system based on AI technology, titled EPASS360: QoE-aware 360-degree Video Streaming over Mobile Devices (the "Paper"). The Paper was accepted by IEEE Transactions on Mobile Computing (TMC), a top international journal in the field of Mobile Computing. Under current home broadband and WiFi environments, this new system solution will predict the allocation rate according to the user's visual field to ensure that the user sees a clear and smooth picture when watching panoramic videos.

360-degree VR panoramic videos are designed to give users a truly immersive video-viewing experience, and to achieve that, it should be set in either ultra-high-definition modes such as 8K or 16K. Network transmission speed of current home broadbands or WiFi, however, does not meet the transmission requirements of ultra-high-definition videos, meaning that users are unable to have the high-quality panoramic video experience at home.

The EPASS360 system can carry out targeted code rate optimization according to different user experience objectives combined with accurate recognition and prediction of playback process. According to iQIYI daily data collected by the academic and public data sets on the experimental results show that EPASS360 is able to increase image quality by about 50% (measured in PSNR, peak noise ratio for the meter) compared to a normal panoramic video streaming media system. The EPSS360 is also at least 5% higher in final user experience scores compared to leading panoramic video streaming media systems.

The main purpose of application for the EPASS360 solution of panoramic video streaming media system is to create the best viewing experience for users. At present, panoramic videos, including VR short films that are iQIYI IP-spinoffs, such as those created for iPARTMENT 5, works performed by the youth competition segment finalists of Wuzhen Theatre Festival, and the LANVIN 2020 autumn/winter women's show, have been launched in the iQIYI VR App, while 360-degree panoramic videos have been made available on Qiyu VR headset products.

iQIYI has long been carrying out discussion and cooperation with the academic community, having continuously increased its research and investment in cutting-edge media streaming technology. The full-year financial results of iQIYI 2019 showed that the R&D expenditure of iQIYI in fiscal year 2019 was RMB 2.7 billion, which represented an increase of 34% compared with the same period in 2018. In addition to the research related to EPASS360, the paper "Improving Quality of Experience by Adaptive Video Streaming with Super-Resolution", which was submitted by iQIYI in collaboration with Peking University and Huazhong University of Science and Technology this year, has also been accepted by IEEE INFOCOM 2020. iQIYI also pioneered the real-time evolution system of multiple Adaptive Bitrate Streaming algorithms (RESA), which increased the average bitrate of videos watched by users by 20%, while the user streaming buffering rate decreased by 13%. In 2019, the paper "RESA: A REAL-TIME EVALUATION SYSTEM FOR ABR" was accepted by IEEE ICME 2019. In the future, iQIYI will continue to strengthen its cooperation with academic and industry partners, and continue to create new technical standards and innovative experiences related to the video industry.

BEIJING, March, 9, 2020 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, recently completed, in cooperation with China Telecom, a leading Chinese telecommunications network operator, verification of the 5G+MEC (Multi-Access Edge Computing) general scheduling scheme, and successfully achieved scale landing of VR services in hotel settings. Based on iQIYI's next-generation CDN system and the service provided by MEC platform, which is independently developed by China Telecom, iQIYI and China Telecom have completed the service positioning standardized interface and a universal adaptation. It supports precise scheduling of iQIYI video content at mass MEC nodes. The scheme could be rapidly replicated in entertainment, education, finance, healthcare, transportation and other industries at scale, accelerating the development of 5G-related industrial applications, and promoting the formulation of related technical standards.

Through this cooperation, iQIYI provided a next-generation CDN system, integrating edge clouds, namely, Qisubo, which together with China Telecom has successfully solved the problem of content distribution and scheduling under MEC scenarios. With the technical support of the 5G network and fixed network, MEC platform, differentiated routing strategy and standardized interfacing for MEC service positioning provided by China Telecom, the project has successfully achieved scale landing of VR services in hotel scenarios, providing technical guarantees of minimal delay, high bandwidth and high computing power for users' VR video-on-demand and/or live broadcasts and VR gaming applications, offering users an immersive VR viewing and gaming experience. It also provides low-cost solutions and differentiated services for hotel VR business applications.

Market research organization IDC predicts that more than 50 billion terminals and devices will be connected to the Internet by 2020, 50% of the Internet of Things network will face limitations in network bandwidth, and 40% of data will need to be analyzed, processed and stored at the edge of the network. The 5G+MEC universal scheduling scheme verified through this cooperation can be rapidly replicated and promoted, benefiting multiple industries including entertainment, education, finance, healthcare and transportation, with 5G. iQIYI and China Telecom plan to further accelerate the popularization of the scheme in 5G-related industries and launch more joint innovation projects on 5G+MEC.

iQIYI has now cooperated on 5G with three major telecom operators in China: China Telecom, China Mobile and China Unicom. Going forward, iQIYI will continue to improve its technical capabilities, unite with its partners, promote the formulation of 5G technology-related standards, support the commercialization of 5G services, and constantly explore new business cooperation models.

Fourth Quarter 2019 Financial Results

●  Total revenues were RMB7.5 billion (US$1.1 billion[1]), representing a 7% increase from the same period in 2018.

●  Net loss attributable to iQIYI was RMB2.5 billion (US$358.2 million), compared to net loss attributable to iQIYI of RMB3.5 billion in the same period in 2018. Diluted net loss attributable to iQIYI per ADS was RMB3.43 (US$0.49), compared to diluted net loss attributable to iQIYI per ADS of RMB4.83 in the same period of 2018.

"We ended 2019 on a solid note with total revenues for the fourth quarter and full year coming in at RMB7.5 billion and RMB29.0 billion, respectively, while content cost only went up by a single digit percentage on full year basis with optimized content structure," commented Dr. Yu Gong, Founder, Director and Chief Executive Officer of iQIYI. "Growing 36% in 2019, membership business continued to spearhead our overall growth throughout the year, driven by the increasing number of total subscribing members which reached 107 million at year end. As we continued to build our comprehensive content library and capitalize on the deep value of our original IPs, our diversified monetization strategy is gradually bearing fruit with other revenues growing 30% year over year and accounting for a record 13% of our total full-year revenues.  Facing the dawn of a new decade, we look forward to the enormous opportunities ahead of us with the approaching 5G commercial adoption and continuous AI technology innovation. We believe the rising willingness of Chinese users to pay for premium content combined with their access to more convenient payment methods, will create significant potential for our business. We are more confident than ever in our content ecosystem and product matrix, which position us well to capture the growth prospects in 2020 and beyond."

"We are pleased to report a set of solid financial and operating performance for the fourth quarter and full year 2019," commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. "In addition to our healthy and more diversified top-line growth, our content costs trended lower as a percentage of total revenues in 2019, which is an encouraging sign of our more balanced content mix and rationalized competition landscape. Going forward, we will continue to make smart and disciplined investments in our content, especially original content, as well as our technology innovations, which form the core of our strategy to achieve long-term growth and drive sustainable value for our shareholders."

Financial Guidance

For the first quarter of 2020, iQIYI expects total net revenues to be between RMB7.10 billion (US$1.02 billion) and RMB7.52 billion (US$1.08 billion), representing a 2% to 8% increase from the same period in 2019. This forecast reflects iQIYI's current and preliminary view, which is subject to substantial uncertainty.

Third quarter 2019 Financial Results

• Total revenues were RMB7.4 billion (US$1.0 billion1), representing a 7% increase from the same period in 2018.
  
• Net loss attributable to iQIYI was RMB3.7 billion (US$516.0 million), compared to net loss attributable to iQIYI of RMB3.1 billion in the same period in 2018. Diluted net loss attributable to iQIYI per ADS was RMB5.04 (US$0.70).

“We continued to make solid progress during the quarter as we march toward our vision of building a technology-based entertainment giant,” commented Dr. Yu Gong, Founder, Director and Chief Executive Officer of iQIYI. “Growing 30% year-over-year, our subscription business contributed more than half of our total quarterly revenues for the first time. This once again demonstrated the strength of our platform and validated our dedication to producing high quality original content.  Leveraging our cutting-edge AI technology, we are continually fine-tuning our content offerings, optimizing our monetization efficiencies, and exploring potential new runways for future growth. With the rapid development of 5G, we believe there will be astonishing new opportunities ahead, and we will continue to push forward the convergence between technology and art to create deeper value and greater prospects for the future.”

“Despite a challenging environment, we delivered another quarter of topline growth with total revenues increasing 7% year-over-year to RMB7.4 billion,” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI.  “Subscription business continued to serve as the major driver of our revenue growth, and we further executed on our multi-dimensional IP development strategy to create new monetization opportunities and diversify our revenue streams. While we experienced some margin fluctuation due to seasonally higher content cost during the quarter, we believe we are on track to improve long-term efficiency through disciplined spending and investment. Going forward, we will continue to drive shareholder value by further enhancing monetization and transitioning toward a more balanced content structure.”

Financial Guidance

For the fourth quarter of 2019, iQIYI expects total net revenues to be between RMB6.86 billion (US$0.96 billion) and RMB7.28 billion (US$1.02 billion), representing a -2% to 4% increase from the same period in 2018. This forecast reflects iQIYI's current and preliminary view, which is subject to substantial uncertainty.

KUALA LUMPUR, Malaysia, Nov. 6, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, announced today that it has reached a strategic partnership with Astro, Malaysia's major pay-television service provider. Based on the global operations of the iQIYI App (the "App"), iQIYI will be cooperating with Astro on marketing and localization of iQIYI's services. Through iQIYI's middle-end for technology, products and content, Astro will be able to benefit from iQIYI's operational capacity; while iQIYI can reach local users through Astro's strong media and marketing networks. Users in Malaysia will be able to use their Astro accounts to login to the iQIYI App or use their Facebook or Google accounts to register for new iQIYI accounts. This helps strengthen iQIYI's international presence and enables iQIYI to offer better entertainment services for overseas markets.

As iQIYI's first App partner outside China and the leading platform in Malaysia, Astro covers TV, OTT, radio and more, providing services for more than 5.7 million households in Malaysia (76% of the Malaysian households). Under the collaboration, users in Malaysia will be able to use the iQIYI App to access iQIYI original dramas, variety shows, films, animations while Astro customers will enjoy more exclusive privileges in content and services. Through previous collaborations in content distribution and the launch of the iQIYI content channel on Astro, iQIYI original programs like The Thunder, Arsenal Military Academy, Last One Standing, Qing Chun You Ni, The Rap of China, I Can I BB are getting popularity in Malaysia. So far, over 2 million local users have visited and watched iQIYI content channel.

"Astro is excited to be iQIYI's first App partner outside China. The partnership is timely in an era of streaming services where consumers are able to enjoy abundant choices in entertainment. The demand for fresh and compelling content, great experience and services matters as consumers become increasingly savvier," said Henry Tan, CEO of Astro. "Content and technology are key drivers for streaming video services and iQIYI is among the forerunners in this space. We look forward to learning from iQIYI in the areas of data science and AI. Leveraging on both Astro and iQIYI's strengths, we are able to offer fresh and compelling content and services that are relevant for the Malaysian demographics." In the future, iQIYI's premium contents such as Sword Dynasty, iPARTMENT 5, Once Upon a Time in LingJian Mountain, I Can I BB 6, Qing Chun You Ni 2, and contents by Astro such as Xuan Web Drama Why So Famous, MACIP, Call Me Handsome will be made available to Malaysian users through the iQIYI App.

"The exchanges and communications of global content have become more accessible with the help of wireless technology, data storage technology and big-data analytics. We hope to provide quality entertainment services to overseas users by sharing our research and development results, data storage capability and computing power with our partners," said Yang Xianghua, President of Membership and Overseas Business Group of iQIYI. "Astro has been a close partner of iQIYI, it has strong marketing capabilities and outstanding content creation and distribution strengths. We share the same belief of providing users with high-quality entertainment experiences through technological innovation and content creativity. And we are confident that this close partnership will continue to fully synergize through the creativity and capabilities of both parties to provide users in Malaysia with better services."

In 2017, iQIYI started reaching overseas audiences through content distribution, over 2,000 episodes of original content has been distributed to over 200 territories. In June 2019, iQIYI officially launched the iQIYI App and powered global operations through its middle-end. The iQIYI App provides subtitle and intelligent search features that run in multiple languages including Chinese, English, Malay, Thai, Indonesian and Vietnamese among others. At present, iQIYI has already established multiple overseas data centers and content distribution networks to conduct system optimization based on different markets' environment to ensure the highest playback quality provided to all users. In the future, iQIYI will share its technology capacities with partners around the world in the areas of media database management, smart content production, smart distribution and smart operation, so as to offer premium entertainment experiences. In terms of international services and operations, by globalizing the technological and content production and through establishing localized teams and partnerships, iQIYI is committed to exploring customized operational modes and serving users of different markets.

BEIJING, Sept. 17, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that the company's "CITIC Securities - iQIYI Intellectual Property Supply Chain Finance Asset-backed Support Plan" (the "Plan") was approved by the Shanghai Stock Exchange ("SSE") for a RMB 3 billion shelf offering of a supply chain finance asset-backed security product. The underlying assets involved are IP-related transactions, making this the first ABS shelf offering of intellectual property supply chain that is approved in China.

This marks iQIYI's second intellectual property supply chain finance asset-backed securitization on the SSE following an initial issuance of RMB 470 million in December 2018, which reflects the recognition of the market for the potential of high-quality film and television content. iQIYI's efforts in asset-backed securitization represents a big step forward for China's entertainment industry as it promotes the sustainable development of the industry by increasing the monetization capabilities of intangible assets such as content intellectual property. As China's leading online entertainment service, iQIYI's business model has evolved to a comprehensive entertainment ecosystem that offers users with services such as e-commerce, gaming, ticket service among many. This unique "Apple Tree" business model enables iQIYI to discover greater value of intellectual properties which play an instrumental role in enhancing the company's monetization capabilities.

The Plan not only broadens iQIYI's own financing channels, but also signifies the overall optimization of the industry's capital chain. The issuance of the asset-backed securities will accelerate the flow rate of funds in the entire industry as it evenly spreads the risk and allows partner production enterprises to get their investment back in a shorter period of time. This enables partner production companies to continuously produce new quality content throughout the cycle.

By demonstrating how the integration of intellectual property and financial innovation can open up a new path in optimizing the value of intangible assets, the Plan will be beneficial to the stakeholders including platforms, content and investors, as it serves as an example of a healthier financial model for the content industry and an innovative solution to achieve synergies among partners within the entertainment industry.

BEIJING, Aug. 5, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, yesterday hosted a "Scream Night" live music concert (the "Event") in Beijing. The Event was held as part of iQIYI's Summer Young events, a series of summer-themed offline events in which iQIYI members are given the opportunity to interact with celebrities that appear in their online viewing experience. The Event featured performances from a star-studded line-up, such as Jay Chou and the company's first Chinese new-gen culture virtual idol band RiCH BOOM (the "Band"), which is composed of 6 band members with different appearance and personalities. At the Event, the Band also debuted a holographic performance of its newly released single Rich Boom.

Prior to this holographic performance, only pre-recorded interactions between virtual characters and human beings were available as real-time response from the virtual character is considered too technically challenging to achieve. For this Event, iQIYI applied real-time interactive technologies, such as the game engine UE4, to reduce the time consumption of production. This allows RiCH BOOM to interact with people in real-time without pre-arranged settings. The performance of the Band itself is realized through holographic projection technology on the main stage.

Driven by its extensive content resources and technology-based mission, iQIYI seeks to establish RiCH BOOM as a leading figure of China's new-gen culture. On August 2nd, 2019, the Band officially released two new singles Dare and Rich Boom, which were jointly produced by the Band's virtual producer Producer C and renowned professionals. One of the singles, Dare, was co-produced by Beyoncé's music producer while its music video was produced together with well-known Hollywood animation director Pete Candeland. The other single, Rich Boom, was co-produced by Bruno Mars' producer, The Stereotypes. Audio recordings and music videos of both singles were released on NetEast music and Weibo music, followed by track releases on Tencent Music and other music platforms.

"iQIYI fully leverages both its online and offline resources to cultivate RiCH BOOM, the first virtual idol brand in China", said Joyce Yang, Vice President of iQIYI. "With differentiated positioning and our unique approach, iQIYI's IPs are able to get quicker responses from the market and be recognized for their commercial values, making them a great representation of our brand."

With its diversified monetization capabilities, iQIYI has been able to innovatively maximize the value of RiCH BOOM's IP. Aside from live performances, the Band has also been featured in iQIYI's online variety show Qing Chun You Ni and its music reality show CZR. The popularity of the Band reflects iQIYI's strong grasp of youth culture and its commitment to set positive cultural trends for young audiences. The company also plans to apply the Band's IP to animation, gaming and collectible toys. Going forward, iQIYI will continue fostering new-gen IPs that focus on the integration of online and offline resources to build its diversified entertainment ecosystem.

First Quarter 2019 Financial Results

• Total revenues were RMB7.0 billion (US$1.0 billion1), representing a 43% increase from the same period in 2018.
• Net loss attributable to iQIYI was RMB1.8 billion (US$270.3 million), compared to net loss attributable to iQIYI of RMB395.7 million in the same period in 2018. Diluted net loss attributable to iQIYI per ADS was RMB2.52 (US$0.35).

“We started off 2019 with a solid quarter of results, especially in membership business driven by our rapidly growing subscriber base of 96.8 million at quarter end,” commented Dr. Yu Gong, Founder, Director and Chief Executive Officer of iQIYI. “We further strengthened our platform and continued to take the lead in China’s internet video streaming industry in terms of various 3rd-party tracking metrics.  Our strategy remains focused on producing high quality original content and refining our IP-centered content ecosystem which will be the key drivers for our future growth. As China’s online entertainment industry is entering a new phase of growth, we believe we are well-positioned to capture the enormous opportunities for us in the years to come.”

“We delivered another quarter of decent top-line growth with total revenues increasing 43% year-over-year to RMB7.0 billion,” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. “Membership business again spearheaded the growth in the quarter, reflecting the strength and popularity of our vast library of premium content. We also continued to broaden and diversify our revenue streams by fully leveraging the IP value of our original content. As 2019 unfolds, we will continue to build and invest in our content ecosystem which is the foundation for us to achieve long-term sustainable growth.”

Financial Guidance

For the second quarter of 2019, iQIYI expects total net revenues to be between RMB6.91 billion (US$1.0 billion) and RMB7.29 billion (US$1.1 billion), representing a 12% to 18% increase from the same period in 2018. This forecast reflects iQIYI's current and preliminary view, which is subject to substantial uncertainty.

BEIJING, May 10, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, today launched the iQIYI Knowledge App at the 2019 iQIYI World Conference. Through its "Starry Sky" project, iQIYI invited partners and content creators to join its initiative to develop high-quality knowledge content and realize the potential of the online paid content market. At the conference, iQIYI also announced a strategic partnership with LinkedIn, the world's leading professional network, providing a broad platform for LinkedIn's high-quality professional learning content. As one of the platform's first partners, LinkedIn will exclusively provide rich video content on global and local professional learning content, and interviews with global business key opinion leaders.

The iQIYI Knowledge App is a strategic paid content marketing initiative covering ten major subjects, including literature and history, art, life, parents and children, and workplace; and four major categories of exam-oriented trainings with over 12,000 courses, including primary and secondary schools, colleges, vocational studies, and foreign languages. The app's diversified, high-quality content is designed to meet the learning needs of users of all ages. Leveraging iQIYI's platform, resources and technology-driven innovation, the app will deliver an improved interactive learning experience to users. Besides, Liu Tianchi Performance Workshop will also cooperate with iQIYI Knowledge App to launch the first batch of three exclusive self-made courses.

iQIYI's newly-launched "Starry Sky" project is designed to encourage the development of high-quality content from partners and teachers. The project will provide a variety of favorable policies on knowledge stores building, content recommendation and distribution, income allocation and preferential subsidies to creators of high-quality content.

Wang Xuepu, Vice President of iQIYI, introduced four content cooperation models in the iQIYI Knowledge App: audio and video courses, co-production, IP customization and exclusive self-production. Users can access the app on their mobile, PC, TV and mini programs, or access through iQIYI's Knowledge Channel, knowledge plug-in and recommendations on iQIYI's website. The app will help partners establish online knowledge stores to increase both brand value and content revenue, through its services on pricing, customized online display, marketing activities, community management, content distribution and fan engagement.

BEIJING, April 28, 2019 /PRNewswire/ -- Yang Xianghua, President of Membership and Overseas Business Group of iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), delivered a keynote speech at the APOS Summit in Bali, Indonesia about iQIYI's continuous innovation in monetization, technology and content ecosystem development against the backdrop of China's ever-changing technological and social environment. Mr. Yang highlighted iQIYI's original content, overseas purchases of high-quality content and development of AI technologies as key strategies to meet the large demand for premium content in the China market. Amazon, YouTube, Facebook, HBO, BBC Studios and Discovery Networks were among the other Summit attendees.

Over the past nine years since the company's establishment, iQIYI not only provides online videos, but also monetizes the platform's content and IPs through other channels such as online games, e-commerce, comics, literature, and ticket sales. iQIYI also pioneered the paid membership business model to meet Chinese users' diversified entertainment demands. As of Q4 2018, iQIYI had 87.4 million paying subscribers whose memberships grant certain privileges such as early access to iQIYI-produced series.

iQIYI has leveraged its deep understanding of users, industry and AI technology to grow its business and user base. The company has found that Chinese users are willing to pay for high-quality content as well as premium services and privileges. iQIYI has applied AI to all aspects of its operations from content production to tagging, distribution to movie playback. The technology has further contributed to iQIYI's understanding of its users, improved the efficiency of original content production and enabled improved user experience.

At the Summit, Mr. Yang also gave deeper context to the China market, which now sees significantly less content pirating than in the past and wide adoption of mobile payments. These trends have created a favorable environment for paid content produced both locally and internationally.

iQIYI's platform features content not only from China, but also from the United States, Korea and India. He added that half of iQIYI's film library consists of US content, with a nearly 50-50 split between users who favor US content and local Chinese films. However, when it comes to TV series, 90% of viewers watch local Chinese-language content while only 10% prefer US TV series.

iQIYI has continuously introduced high-quality content to global audiences, including The Story of Yanxi Palace, The Legend of White Snake, The Golden Eyes, and other popular variety shows such as The Rap of China and Hot Blood Dance Crew.

APOS Summit is Asia's leading annual event for the media, telecoms and entertainment industry. The summit focuses on the video sector and the ecosystem for creating, distributing and monetizing content.

BEIJING, April 19, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, was ranked 76^th place on the Brand Finance's 2019 ranking of the most valuable Chinese brands, an increase of 103 places in ranking compared to last year, making the company the fastest-growing Chinese brand of 2019. iQIYI was also named the world's fastest-growing brand of 2019 by Brand Finance in its Global 500 2019 Report, which was released in January this year. Both achievements mark iQIYI's growing influence from a global perspective as a company. Notably, the company achieved a whopping 326% year on year increase in brand value for the Global 500 2019 Report. Brand Finance rankings and evaluations feature other leading global brands including Amazon, Apple, Google and Netflix.

Brand Finance is the world's leading independent branded business valuation and strategy consultancy and it evaluates the world's biggest brands to determine which are the strongest and most valuable.

On iQIYI's brand value growth, Brand Finance notes, "With more consumers than ever preferring on-demand streaming content, Chinese tech giant iQIYI entered the Brand Finance Global 500 for the first time with a brand value of US$4.3 billion, making it the world's fastest-growing brand this year." This not only suggests an immense growth in demand for media content from Chinese consumers, but also the company's success with its original content strategy.

As China's leading online entertainment platform, iQIYI is committed to its forward-looking values and strives to deliver entertainment which is creative and innovative in both content and format. For example, its original costume drama Story of Yanxi Palace was the most googled TV drama of 2018, becoming the first Chinese TV drama to achieve that status. Furthermore, the company's original variety shows including Idol Producer, The Rap of China and Hot Blood Dance Crew have also played an instrumental role in helping iQIYI raise its global brand value as the shows were highly acclaimed overseas through international distributions.

"We are honored to be named by the prestigious Brand Finance as the world's fastest-growing brand and fastest-growing Chinese brand," said iQIYI Founder and CEO Dr. Gong Yu. "This represents both our deep understanding of Chinese consumers as well as the promising outlook of China's entertainment industry – there is no better time for iQIYI to take the lead in shaping China's entertainment industry."

As China's economy becomes more globalized, more and more Chinese brands share a voice in the international market. Earning the titles of World's fastest growing brand and fastest-growing Chinese brand not only reflects the business potential behind the company, but also highlights the growth of the Chinese entertainment industry and the promising outlook of communicating Chinese culture to a wider audience. Going forward, iQIYI will continue to focus on the creation of original content to satisfy audiences and their desire to experience Chinese culture in entertainment.  

BEIJING, April 18, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, today released the performance results of two acclaimed films distributed under its revenue sharing model (the "Model"): joint-Thai, Chinese and U.S. production Triple Threat and Indian film The Man Who Feels No Pain. Under iQIYI's revenue sharing model, part of the proceeds generated from paid subscribers are shared directly with production houses. Both films were released quasi-simultaneously on iQIYI's online video-streaming platform and in movies theaters internationally. This allowed the company to shorten the conventional distribution window, providing Chinese audiences with access to quality content within days of the films' premiere. As of April 14 2019, the accumulated viewership for the two films have exceeded one million views and the online sharing revenue of Triple Threat has exceeded RMB 10 million, which is six times greater than the revenue generated by the Chinese box office. Functioning on its paid-membership system, the exclusive distribution of foreign and sino-foreign movies through the model demonstrates how the company is using diverse business models to widen its influence on the global film industry.

Triple Threat, an action thriller about a team of mercenaries who help a billionaire's daughter bring down a major crime syndicate, premiered on iQIYI onMarch 29. This was followed by the exclusive premiere of The Man Who Feels No Pain in theChinamarket through iQIYI's streaming platform onApril 4. The film, which tells the story of a young man who has a rare condition called congenital insensitivity to pain and his quest to vanquish his foes, had won the People's Choice Award for Midnight Madness at the 2018 Toronto International Film Festival ("TIFF"), which wasIndia'sfirst-ever entry into the this segment. Given that TIFF awards are selected by audience votes instead of a judging panel, winning the award is a great testimony of the market's approval and favorability of the movie and are often considered as the harbinger for other awards, such as the Academy Awards, that would ensue.

The release of both films represents iQIYI's continuous efforts to bring to its subscribers the best quality content from around the world by shortening the distribution windows. It also shows international production houses' recognition of iQIYI's strong position in China's online film industry. In addition to licensed online series and self-produced productions, iQIYI initiated its innovative model for revenue sharing in 2014, which has been of great success for both iQIYI and its partners, partially due to wide acceptance of the model by different parties within the industry. In 2018, each of the 25 online movies which were released on iQIYI's platform under the model achieved shared revenues of over RMB 10 million, representing a year-on-year increase of 34% on the total online shared revenue. Notably, the 2018 Chinese movie The Ferry Man: Manjusaka released under the model achieved a shared revenue RMB 45 million. In addition, iQIYI released 116 online dramas under the model in 2018, of which costume drama Buried City to Shut All Lights exceeded RMB 30 million in shared revenue.

BEIJING, April 3, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, today announced that its in-vehicle entertainment solution will be offered as part of Ford's SYNC+, a new in-vehicle infotainment system jointly developed by Ford China and Baidu. Starting later this year, SYNC+ will be rolled out in a range of new domestically-built Ford and Lincoln models in China.

iQIYI continues to demonstrate its efforts to improve user experience and benefits by venturing into the field of in-vehicle online video streaming services, helping to pave a new path for, as well as raise the value of, the online video streaming industry with its new in-vehicle entertainment solution.

Synchronized with the FordPass App and powered by an extensive range of functions including intelligent voice assist, customized recommendations, in-vehicle online video streaming, smart navigation and vehicle-to-smart home connectivity, SYNC+ will provide Chinese customers with an upgraded in-vehicle experience.

Through SYNC+, users will be able to access all copyrighted content from iQIYI's massive content database and achieve voice commands through an intelligent voice recognition function. In addition, by logging into their iQIYI accounts using the car's interface, users can access their viewing history and receive user-customized content recommendations, allowing them a seamless viewing experience. Customers can relax and enjoy movies and TV programs while parked, for example while waiting for their children to finish school.

iQIYI has developed this flexible in-vehicle entertainment solution to address the consumers' increasingly sophisticated needs when using their vehicles. Powered by AI technology and a professional UX product design, it offers a range of valuable services including VIP membership access, which will help deliver a premium in-vehicle video entertainment experience to users and help iQIYI and Ford achieve a mutually beneficial partnership.

"Intelligent vehicles are becoming a major part of our new way of life, as we embrace trends like connectivity, autonomy, electrification and the sharing economy," said Duan Youqiao, Senior Vice President at iQIYI, "iQIYI will constantly strengthen cooperation with automotive industry players as we explore more innovative strategies to optimize in-vehicle entertainment solutions and strive to achieve and offer a brand new experience for our users."

BEIJING, March 25, 2019 (GLOBE NEWSWIRE) -- iQIYI, Inc. (IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, today announced the proposed offering (the “Notes Offering”) of US$1.05 billion in aggregate principal amount of convertible senior notes due 2025 (the “Notes”), subject to market and other conditions. The Company intends to grant the initial purchasers in the Notes Offering a 13-day option to purchase up to an additional US$150 million in principal amount of the Notes. The Company plans to use part of the net proceeds from the Notes Offering to pay the costs of the capped call transactions described below, and use the remainder of the proceeds to expand and enhance its content offerings, to strengthen its technologies, and for working capital and other general corporate purposes.

The Notes will be senior, unsecured obligations of iQIYI. The Notes will mature on April 1, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. Holders of the Notes may require the Company to repurchase all or part of their Notes in cash on April 1, 2023 or in the event of certain fundamental changes. Prior to October 1, 2024, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Holders may convert their Notes at their option at any time on or after October 1, 2024 until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company’s American Depositary Shares (“ADSs”), or a combination of cash and ADSs, at its election. The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes.

BEIJING, March 25, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, today announced that its paper on the development of a real-time evolution system of multiple Adaptive Bitrate Streaming algorithms, titled RESA: A Real-time Evaluation System for ABR ("the paper"), has been accepted by IEEE ICME 2019. The paper was completed by an engineering team from iQIYI and stood out from more than 1,000 submissions under an exceptionally low 30% acceptance rate. As highlighted in the paper, iQIYI was able to lower its users' streaming rebuffering ratio by 13% through deploying the RESA system and its optimized algorithms.

The paper focuses on a mechanism which enhances video playback fluidity and optimizes users' viewing experience under varying network bandwidth environments by automatically selecting the most fitting algorithms through RESA, an efficient platform in the industry that performs real-time A/B tests of adaptive bitrate streaming algorithms on real users' environment and maturate them quickly.

"It is an honour to be recognized by the IEEE community for our strength in technological research and development," said Liu Wenfeng, Chief Technology Officer at iQIYI. "The acceptance by one of the world's top academic conferences marks a triumph for iQIYI, demonstrating our dedication and achievement in ensuring and enhancing the fluidity of the users' viewing experience through technological innovation."

iQIYI is currently conducting trial runs of RESA in several provinces in China. The trialdata shows that during peak hours between 7pm and 11pm, the average bitrate of video streaming by iQIYI users has increased by 20%, while the average rebuffering ratio has declined by 13%. To achieve this result, iQIYI's engineering team applied innovative AI technologies such as deep learning and neural networks to the adaptive bitrate streaming procedure.

In recent years, iQIYI's achievements in technical research and development has been repeatedly recognized by key international academic organizations. For example, a joint research team established by IQIYI and the Peking University won the BIGCOM 2018 Best Paper Award by applying AI neural network algorithms to continuously improve the efficiency of HCDN distribution technology, reducing overall bandwidth costs by 70%. In addition, iQIYI and Peking University also collaborated to publish papers on IEEE INFOCOM 2018 and ICC 2018, which were well-received by the international academic community.

As technological advancements continue to shape the future of the entertainment industry, user experience is key to establishing one's place as industry leader. Going forward, iQIYI will continue to push the boundaries of innovation to provide its users with optimal entertainment experiences and carry out its vision to become a technology-driven entertainment giant.

IEEE ICME, or the International Multimedia and Expo Conference, is one of the top international conferences in the field of computer multimedia, that is jointly organized by four of The Institute of Electrical and Electronics Engineers' (IEEE) societies.

BEIJING, March 19, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment company in China, today announced the launch of its 8K VR visual experience at China Unicom's 5G Innovation Showroom in Beijing, in effort to explore the commercialization of 5G technology. The two companies will collaborate to jointly produce customized VR products in the future.

Along with China Unicom's 5G network, the 8K VR visual experience is brought to customers by iQIYI's high-speed streaming "Qisubo" service and QIYU VR Standalone Headset. With the support of 5G technology, users will be able to enjoy an even more immersive VR experience with 8K playback quality at unprecedented fluidity, clarity and resolution. This is made possible by the minimal latency and sufficient bandwidth enabled by the 5G technology, allowing iQIYI's product to successfully integrate Content Delivery Networks (CDN) technology with 5G and Mobile Edge Computing (MEC).

"This collaboration marks a successful cross-sector that fully utilizes each company's strengths in the areas of infrastructure and technology," said Liu Wenfeng, Chief Technology Officer at iQIYI. "We are thrilled that iQIYI's cutting-edge technology can be used to explore the endless possibilities in the commercialization of 5G technology and contribute to expanding the boundaries of entertainment technology to enrich user experience."

According to Miao Wei, Minister of China's Ministry of Information and Industry Technology (MIIT), China will carry out 5G trials in various cities across the country this year, marking an exciting time to explore the commercialization of 5G technology. In comparison to 4G technology, 5G technology provides Internet at a speed that's 10 to 100 times faster, network latency within the millisecond range, and data density of 10Mbps/Sqm. The implementation of this breakthrough technology in iQIYI's collaboration with China Unicom Beijing has in turn resulted in remarkable progress for the enhancement of VR experiences available on the market.

iQIYI's "Qisubo" service can be flexibly applied to various types of networks of all sizes, and customize video content according to the user's physical location. In the future, this service will be applied to VR cinema rooms, offline VR experience stores and other products, so that users in hotels, airports, high-speed trains, universities, shopping malls and other settings can enjoy an extensive selection of high-quality video content. During the 2019 Lunar New Year, iQIYI cooperated with AIS, a well-known Thai telecommunications operator, and China Unicom International Limited (CUG) to make "Qisubo" service available in various hotels in Thailand.

BEIJING, March 18, 2019 /PRNewswire/ -- Dr. Gong Yu, Founder and CEO of iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), delivered a keynote speech on the importance of innovation in the entertainment industry at the Hong Kong International Film & TV Market ("FILMART"), Asia's premier film industry event. At the event, the company today unveiled a series of its new 2019 original content.

"China's entertainment industry has entered an exciting era that's built on rapid development driven by growing consumer demand and technology advancement," said Dr. Gong in his keynote speech. "I'd like to share with you all a rule stating that once a country's GDP per capita reaches US$8,500, its entertainment industry will experience continuous growth that will last for over ten years at a pace of over 10% per year. China's GDP per capita last year was over US$9,000 - there is no better time for iQIYI to take the lead in shaping China's entertainment industry."

Dr. Gong attributed the success of iQIYI's original content to the company's deep understanding of consumers' needs and effective business model. He noted that this is delivered by utilizing and investing in iQIYI's cutting-edge AI technology and innovative talents, both essential to improving user experience and the company's monetization capabilities.

Dr. Gong pointed out that for the past three centuries, innovation has been key to advancing human and technology development, highlighting that similarly, innovation is crucial to ensuring the healthy growth of China's entertainment industry. He noted at iQIYI, this innovation is embedded in all aspects of its business, whether its in the company's talents, operation, technology, user experience, or original content. The company is committed to driving this innovation-led trend by becoming a technology-based entertainment giant.

iQIYI today launched its new content line-up at FILMART, which includes original dramas The Golden Eyes, Legend of White Snake, Sword Dynasty, The Thunder, as well as new movies, animations and variety shows such as The Rap of China 2, marking the company's ongoing goal to provide more original content to the Greater China and international markets. Since 2017, iQIYI has proactively pursued overseas distribution opportunities for its original content, and as a result has secured a strong audience base in Southeast Asia and the Americas. The company managed to break into the global market and has already distributed over 1,000 episodes of original content on mainstream overseas television and streaming platforms, including blockbuster drama Story of Yanxi Palace. This success has established iQIYI as a major contributor to the advancement of the Chinese entertainment industry by bringing up film and television production in China to international standards and successfully communicating the charm of Chinese culture to overseas audiences.

Fourth Quarter 2018 Financial Results

• Total revenues were RMB7.0 billion (US$1.0 billion1), representing a 55%2 increase from the same period in 2017.
• Net loss attributable to iQIYI was RMB3.5 billion (US$505.7 million), compared to net loss attributable to iQIYI of RMB612.4 million in the same period in 2017. Diluted net loss attributable to iQIYI per ADS was RMB4.83 (US$0.70).

“We delivered another quarter of solid growth and closed out the year on a strong footing with over 87 million total subscribing members,” commented Dr. Yu Gong, Founder, Director and Chief Executive Officer of iQIYI. “As we enter 2019, we are confident in generating growth across the board, led by membership services which has demonstrated continued momentum. We maintain our strategic focus on producing original premium content, and will continue to advance our technology innovation and nurture our ecosystem to fully leverage the tremendous IP value in our content. With an exciting new year ahead, we look forward to further strengthening our platform and continuing our journey to become a technology-based entertainment giant. ”

“We are pleased to report strong top-line growth for fiscal year 2018 with total revenues increasing 52% year-over-year to RMB25 billion,” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. “Membership business continued to be the main engine driving our growth, while we further broadened and diversified other revenue streams. 2018 was also a transition year for us, as we devoted more resources towards producing original content which added pressure to our margins. We believe our investment in premium content will prove to be very rewarding and help better position the Company for long-term growth.”    

Financial Guidance

For the first quarter of 2019, iQIYI expects total net revenues to be between RMB6.80 billion (US$989.6 million) and RMB7.10 billion (US$1.0 billion), representing a 40% to 46% increase from the same period in 2018. This forecast reflects iQIYI's current and preliminary view, which is subject to substantial uncertainty.

BEIJING, Feb. 19, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that its original crime drama "Burning Ice" has begun its broadcast run on BS TWEIIV (BS12), a Japanese TV station. Shown on the channel at the primetime slot of 7pm every Friday, the broadcast represents the first time a Chinese crime drama has been acquired by NHKEP for distribution in Japan through a mainstream local Japanese TV channel. The show's broadcast on BS12 follows its previous distribution outside of mainland China on Netflix and on OTT platform HMVOD in Hong Kong.

"The maturity of Japanese TV market in terms of both the quality and quantity of the country's self-developed crime drama is exceptionally high, which makes iQIYI's successful distribution of 'Burning Ice' to Japan an even greater achievement," said Chen Xiao, Vice President of iQIYI. "We're delighted to have the opportunity to share iQIYI's premium video content with greater numbers of viewers outside mainland China, as the popularity of Chinese dramas continues to surge overseas."

"Burning Ice" is adapted from the crime novel under the same name by Chinese author Zijin Chen, with a complex plot exploring the psychological states of its characters and the motivations behind their crimes. The series was produced by Dai Ying, Vice President at iQIYI who heads up the company's original drama division, and executive produced by the renowned producer Han Sanping. Directed by industry newcomer Luxing, the show stars Qin Hao, Deng Jiajia, Dai Xu and Wang Zhen'er.

iQIYI original drama are increasingly being embraced by audiences outside China, with iQIYI content including "The Mystic Nine", "Tientsin Mystic" and "Ghost Blows Out the Light - Finding Hu Bayi" having also been selected for broadcast in overseas markets. Japanese channels previously broadcast iQIYI's megahit costume drama "The Story of Yanxi Palace", and Japan's viewers will soon be able to enjoy a greater range of iQIYI content including "With you", "Summer's Desire" and "Tang Dynasty Tour".

SHANGHAI, Jan. 24, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced a deepening of its partnership in joint premium membership benefits with Ctrip (NASDAQ: CTRP), Asia's largest online travel agency and the third largest in the world.

Under the agreement, members who purchase iQIYI Diamond VIP or QIYIGUO year card benefits on the iQIYI platform will be able to claim the benefits of Ctrip Prime members, including the use of Ctrip's VIP airport lounges, priority access for purchasing train tickets, discounts on hotel bookings, vehicle reservation, entry to sightseeing attractions and more. Similarly, customers who become Ctrip Prime members can activate an iQIYI 8-month VIP membership and enjoy access to VIP exclusive content, members-only audio-visual experiences, attendance at exclusive offline events and more.

The strengthened partnership between iQIYI and Ctrip, which are respectively the leading online entertainment platform and leading online travel platform in China, builds on an agreement in membership benefits announced by both companies last August. The previous agreement granted iQIYI V7 VIP members with all the perks available to Ctrip Prime members at no extra cost, and was received to great popularity, with statistics showing that over 98% of eligible subscribing iQIYI members claimed their benefits on the Ctrip platform. Both iQIYI and Ctrip attract a similar user profile of affluent, young customers who are willing to pay for high quality services, increasing potential synergy between the two platforms.

"Expanding co-operation with our network of partners is essential to maximizing the value we provide for our subscribing members," said Yang Xianghua, President of iQIYI's Membership and Oversea Business Group. "Following the success of our initiative with Ctrip last August, the deepening of this new partnership will allow a greater number of iQIYI subscribing members to enjoy Ctrip's premium travel services. We look forward to seeing this powerful combination produce even more impressive results."

"Ctrip is delighted to work together with iQIYI to offer the best of both entertainment and travel services to our members across China," said Sun Bo, CMO at Ctrip. "iQIYI has led China's entertainment market in the development of outstanding original content, member-specific benefits and sophisticated AI technology, making them the ideal partner to help add to the experience of our Ctrip Prime members."

As part of its efforts to strengthen partnerships with leading players in China's tech industry, in April of last year iQIYI launched a joint membership program with JD.com, China's largest online retailer. The partnership was also a resounding success, attracting more than one million new joint members within the first week after the launch.

GUANGZHOU, China, Dec. 10, 2018 /PRNewswire/ -- iQIYI Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, recently announced a new wide-ranging partnership with China Mobile and MIGU, China Mobile's integrated music and video streaming app. Announced at the 2018 China Mobile World Partners Conference in Guangzhou, the partnership covers combined membership packages and deals in mobile data for video. 

This partnership will allow users a richer mobile experience and open up horizons for both sides to explore new paths in combined paid membership packages and mobile data services. The "membership + mobile video data" package will allow Chinese consumers premium access to enjoy both services, automatically receiving all the benefits of iQIYI VIP Members and MIGU Video premium members. The jointly promoted deal also includes 30G of mobile data for use on both the iQIYI app and MIGU's video app.

"iQIYI is always looking for ways to improve the benefits of our VIP members and this partnership with China Mobile and MIGU, China Mobile's premier integrated music, video and gaming app, will allow them to benefit from a new comprehensive 5G video entertainment ecosystem," said Duan Youqiao, Senior Vice President at iQIYI. "The combination of iQIYI and China Mobile's resources is sure to be a force to be reckoned with in China's online entertainment space."

"MIGU is honored to partner with iQIYI, China's most innovative online entertainment service, on this joint membership program," said Yan Zhongwei, Vice General Manager at MIGU. "We are sure China Mobile users will be delighted at the prospect of iQIYI's vast catalogue of premium video content being added to MIGU's video platform, and we are looking forward to developing a close relationship with iQIYI going forward."

As the largest mobile communications operator in the world, China Mobile has taken the lead in bringing 5G to provinces and cities across the country, with China Mobile users enjoying special advantages in bandwidth and traffic. iQIYI is one of China's online leading entertainment services, producing mega-hit original content such as "Idol Trainer" and "Story of Yanxi Palace."

According to the 2018 "China Internet Audiovisual Development Entertainment Report," China had 609 million online video users and 578 million mobile video users as of June 2018. This partnership between iQIYI and China Mobile marks the first cooperation between an internet video platform and mobile operator, a partnership that is expected to deepen as the mobile market continues to grow and become more sophisticated.

BEIJING, Nov. 30, 2018 /PRNewswire/ -- iQIYI Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced the launch of a new cross-industry initiative to install virtual reality (VR) experience rooms in selected hotels across China. iQIYI has signed partnerships with some of biggest hotel brands across China's hospitality industry, as part of a drive to find further offline monetization opportunities for its advanced VR tech.

iQIYI has already signed agreements with five hotel brands across China as part of the VR Experience Hotel Room initiative, and talks for potential co-operation with a further six hotel brands are underway. The number of iQIYI VR Experience hotel rooms is estimated to reach 100,000 by the end of 2019.

"The increasing sophistication of technology like VR is already changing how people live their lives, having deep implications for all industries, including hospitality," said Xiong Wen, CEO of Chongqing iQIYI Intelligent Technology Co., Ltd. "iQIYI is delighted at the opportunity to work with some of the world's most respected hotel brands, using our experience in entertainment technology to ensure the comfort of their stay is matched with the very best immersive entertainment experience available."

With more than 560 million monthly active users on the company's mobile app, iQIYI's user base reflects a significant portion of Chinese society, particularly young and technologically sophisticated urbanites. This has greatly positive implications for hotel industry partners hoping to attract new customers to their hotels. Going forward, iQIYI will continue to leverage the strength of its user base, unrivalled selection of IP and advanced AI and VR technology to open up more channels for cross-industry collaboration, both online and offline.

BEIJING, Nov. 29, 2018 (GLOBE NEWSWIRE) -- iQIYI, Inc. (IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, today announced the pricing of its previously announced offering (the “Notes Offering”) of US$650 million in aggregate principal amount of convertible senior notes due 2023 (the “Notes”). The Company has granted the initial purchasers in the Notes Offering a 13-day option to purchase up to an additional US$100 million in principal amount of the Notes. The Company plans to use part of the net proceeds from the Notes Offering to pay the cost of the capped call transactions described below, and use the remainder of the proceeds to expand and enhance its content offerings, to strengthen its technologies and for working capital and other general corporate purposes.

The Notes will bear interest at a rate of 3.75% per year, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2019. The Notes will mature on December 1, 2023, unless previously repurchased, redeemed or converted in accordance with their terms prior to such date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. Holders of the Notes may require the Company to repurchase all or part of their Notes in cash on December 1, 2021 or in the event of certain fundamental changes. Prior to June 1, 2023, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Thereafter, the Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion rate of the Notes is 37.1830 of the Company’s American Depositary Shares (“ADSs”), each currently representing seven Class A ordinary shares of the Company, per US$1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately US$26.89 per ADS and represents a conversion premium of approximately 40% above the NASDAQ closing price of the Company’s ADSs on November 29, 2018, which was US$19.21 per ADS). The conversion rate for the Notes is subject to adjustment upon the occurrence of certain events. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election.

The Notes have been offered in the United States to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes, the ADSs deliverable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or the securities laws of any other place, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

In connection with the Notes Offering, the Company has entered into capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions (the “Option Counterparties”). The capped call transactions are expected to reduce potential dilution to existing holders of the ordinary shares and ADSs of the Company upon conversion of the Notes and/or offset any potential cash payments that the Company is required to make in excess of the principal amount of any converted notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional Notes, the Company may enter into additional capped call transactions. As part of establishing their initial hedges of the capped call transactions, the Option Counterparties or their respective affiliates expect to trade the ADSs and/or enter into various derivative transactions with respect to the Company’s ADSs concurrently with, or shortly after, the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of the ADSs or the Notes at that time. If any such capped call transactions fails to become effective, whether or not the Notes Offering is completed, the Option Counterparties may unwind their hedge positions with respect to the ADSs, which could adversely affect the value of the ADSs and, if the Notes have been issued, the value of the Notes.

In addition, the Option Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to the ADSs or other securities of the Company in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes. The Option Counterparties may engage in such activity during any observation period relating to a conversion of the Notes. This activity could also cause or avoid an increase or a decrease in the market price of the ADSs or the Notes, which could affect noteholders’ ability to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of such Notes.

The cap price of the capped call transactions is initially US$38.42 per ADS, representing a premium of approximately 100% to the NASDAQ closing price of the Company’s ADSs on November 29, 2018, which was US$19.21 per ADS and is subject to adjustment under the terms of the capped call transactions.

The Company expects to close the Offering on or about December 4, 2018, subject to the satisfaction of customary closing conditions.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending offerings of the Notes, and there can be no assurance that any of the offerings will be completed.

BEIJING, Nov. 28, 2018 (GLOBE NEWSWIRE) -- iQIYI, Inc. (NASDAQ: IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, today announced the proposed offering (the “Notes Offering”) of US$500 million in aggregate principal amount of convertible senior notes due 2023 (the “Notes”), subject to market and other conditions. The Company intends to grant the initial purchasers in the Notes Offering a 13-day option to purchase up to an additional US$75 million in principal amount of the Notes. The Company plans to use part of the net proceeds from the Notes Offering to pay the cost of the capped call transactions described below, and use the remainder of the proceeds to expand and enhance its content offerings, to strengthen its technologies, and for working capital and other general corporate purposes.

The Notes will be senior, unsecured obligations of iQIYI. The Notes will mature on December 1, 2023, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. Holders of the Notes may require the Company to repurchase all or part of their Notes in cash on December 1, 2021 or in the event of certain fundamental changes. Prior to June 1, 2023, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Thereafter, the Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company’s American Depositary Shares (“ADSs”), or a combination of cash and ADSs, at its election. The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes.

The Notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes, the ADSs deliverable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or the securities laws of any other place, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

In connection with the Notes Offering, the Company intends to enter into capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions (the “Option Counterparties”). The capped call transactions are expected to reduce potential dilution to existing holders of the ordinary shares and ADSs of the Company upon conversion of the Notes and/or offset any potential cash payments that the Company is required to make in excess of the principal amount of any converted notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional Notes, the Company may enter into additional capped call transactions.  As part of establishing their initial hedges of the capped call transactions, the Option Counterparties or their respective affiliates expect to trade the ADSs and/or enter into various derivative transactions with respect to the Company’s ADSs concurrently with, or shortly after, the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of the ADSs or the Notes at that time. If any such capped call transactions fails to become effective, whether or not the Notes Offering is completed, the Option Counterparties may unwind their hedge positions with respect to the ADSs, which could adversely affect the value of the ADSs and, if the Notes have been issued, the value of the Notes.

In addition, the Option Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to the ADSs or other securities of the Company in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes. The Option Counterparties may engage in such activity during any observation period relating to a conversion of the Notes. This activity could also cause or avoid an increase or a decrease in the market price of the ADSs or the Notes, which could affect noteholders’ ability to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of such Notes.

BEIJING, Nov. 28, 2018 (GLOBE NEWSWIRE) -- iQIYI, Inc. (NASDAQ: IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, today announced the proposed offering (the “Notes Offering”) of US$500 million in aggregate principal amount of convertible senior notes due 2023 (the “Notes”), subject to market and other conditions. The Company intends to grant the initial purchasers in the Notes Offering a 13-day option to purchase up to an additional US$75 million in principal amount of the Notes. The Company plans to use part of the net proceeds from the Notes Offering to pay the cost of the capped call transactions described below, and use the remainder of the proceeds to expand and enhance its content offerings, to strengthen its technologies, and for working capital and other general corporate purposes.

The Notes will be senior, unsecured obligations of iQIYI. The Notes will mature on December 1, 2023, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Company may not redeem the Notes prior to maturity, unless certain tax-related events occur. Holders of the Notes may require the Company to repurchase all or part of their Notes in cash on December 1, 2021 or in the event of certain fundamental changes. Prior to June 1, 2023, the Notes will be convertible at the option of the holders only upon satisfaction of certain conditions and during certain periods. Thereafter, the Notes will be convertible at the option of the holders at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver to such converting holders, as the case may be, cash, the Company’s American Depositary Shares (“ADSs”), or a combination of cash and ADSs, at its election. The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Notes.

The Notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes, the ADSs deliverable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been and will not be registered under the Securities Act or the securities laws of any other place, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

In connection with the Notes Offering, the Company intends to enter into capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions (the “Option Counterparties”). The capped call transactions are expected to reduce potential dilution to existing holders of the ordinary shares and ADSs of the Company upon conversion of the Notes and/or offset any potential cash payments that the Company is required to make in excess of the principal amount of any converted notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional Notes, the Company may enter into additional capped call transactions.  As part of establishing their initial hedges of the capped call transactions, the Option Counterparties or their respective affiliates expect to trade the ADSs and/or enter into various derivative transactions with respect to the Company’s ADSs concurrently with, or shortly after, the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of the ADSs or the Notes at that time. If any such capped call transactions fails to become effective, whether or not the Notes Offering is completed, the Option Counterparties may unwind their hedge positions with respect to the ADSs, which could adversely affect the value of the ADSs and, if the Notes have been issued, the value of the Notes.

In addition, the Option Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivative transactions with respect to the ADSs or other securities of the Company in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes. The Option Counterparties may engage in such activity during any observation period relating to a conversion of the Notes. This activity could also cause or avoid an increase or a decrease in the market price of the ADSs or the Notes, which could affect noteholders’ ability to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes, could affect the amount and value of the consideration that noteholders will receive upon conversion of such Notes.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

This press release contains information about the pending offerings of the Notes, and there can be no assurance that any of the offerings will be completed.

BEIJING, Nov. 21, 2018 /PRNewswire/ -- iQIYI Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that it is partnering with Google in the field of Digital Rights Management (DRM) to incorporate Google's Widevine DRM technology into its Multi-DRM system, which has already earned recognition by ChinaDRM Lab, China's most prestigious DRM organization. iQIYI has been a consistent leader in the application of DRM in China, and is the first Chinese internet video platform to incorporate Google Widevine DRM on its platform for use on the Chrome browser.

DRM technology is the system used globally to securely distribute content, and is widely deployed in the entertainment industry to protect film media and other IP. Google Widevine is the native DRM solution for the Google Chrome browser and Android platform. With a leading encryption system for secure distribution and protection of video playback on any consumer device, Widevine DRM is deployed by nearly every major online video service. iQIYI's use of Widevine DRM will enhance protection of licensed content on its platform, with the added benefit of allowing users accessing iQIYI via Chrome on both Windows and MacOS to enjoy a high-definition viewing experience.

"We are delighted to partner with Google in adding Multi-DRM to our platform's capabilities, providing high quality licensed copyrighted content to our users, while pushing forward the quality of rights protection in the Chinese entertainment industry," said Yu Ke, Senior Director of iQIYI.

"iQIYI is currently one of the largest online video sites in the world, with nearly 6 billion hours spent on its service through mobile devices each month and over 560 million monthly active users on mobile devices. We are pleased to bring the Widevine product to a service of this scale," said Brian Baker, Senior Director and the Head of Widevine at Google.

iQIYI has been at the forefront of DRM application technology among online streaming services in China. In May 2018, iQIYI's Multi-DRM system was approved by China's most prestigious DRM organization, ChinaDRM Lab, becoming the country's first internet video platform to receive this certification.

As iQIYI expands its vast selection of high-quality content, it will continue to seek out partnerships with leading DRM solutions, ensuring iQIYI meets the highest international standards and accelerating technology adoption across China.

BEIJING, Nov. 14, 2018 /PRNewswire/ -- iQIYI and CBS Studios International today announced an exclusive licensing agreement for "The Late Late Show with James Corden". This is the first time the series has been made available in China, with current and past episodes available on-demand on the iQIYI platform.

Since launching with James Corden in March 2015, "The Late Late Show with James Corden" has become one of the most talked about shows on television. A-listers who have appeared on the show include Tom Hanks, Matt Damon, Arnold Schwarzenegger, David Beckham, Julia Roberts, George Clooney and Will Ferrell. "The Late Late Show with James Corden" currently has 475 clips on YouTube with more than 1 million views each, resulting in more than 5 billion overall views and over 16 million subscribers for the show's YouTube channel.

In addition, the show's "Carpool Karaoke" segment is the most social hit ever on U.S. late night television, with over 1.95 billion views on YouTube since its inception only a year ago. "Carpool Karaoke" has quickly become known for attracting the world's biggest stars including Adele and Justin Bieber, whose segments are currently the #1 and #2 most watched Late Night clips on YouTube, along with Mariah Carey, Jennifer Lopez, Stevie Wonder, Gwen Stefani, Elton John and One Direction.

"We are more than delighted to bring 'The Late Late Show' to our platform," said an iQIYI spokesperson. "We believe the one and only James Corden will also be well recognized by millions of Chinese audiences. iQIYI is always seeking to provide the highest quality premium entertainment content to our users. We want to collaborate and partner with CBS Studios International as it is one of the leading international content providers."

"It's exciting to join forces with iQIYI to bring the supreme talent of James Corden and the star power of his guests to Chinese audiences," said Armando Nuñez, President & CEO, CBS Global Distribution Group. "Mobile viewing dominates iQIYI's subscriber base, making it the perfect platform for the inventive content and viral moments of 'The Late Late Show'."

"We are so honoured and excited that our show is now available in China. We hope people enjoy watching it as much as we enjoy making it," said Ben Winston and Rob Crabbe, Executive Producers, "The Late Late Show with James Corden".

"The Late Late Show with James Corden" is produced by CBS Television Studios, with Fulwell 73. Ben Winston and Rob Crabbe serve as executive producers. The series is distributed worldwide by CBS Studios International.

Third Quarter 2018 Financial Results

• Total revenues were RMB6.9 billion (US$1.0 billion1), representing a 48%2 increase from the same period in 2017.
• Net loss attributable to iQIYI was RMB3.1 billion (US$457.3 million), compared to RMB1.1 billion in the same period in 2017. Diluted net loss attributable to iQIYI per ADS was RMB4.34 (US$0.63).

“We continued to deliver solid results during the third quarter backed by a set of strong user reach and engagement metrics that further validates our leading position in the industry,” commented Dr. Yu Gong, Founder and Chief Executive Officer of iQIYI. “Our library of premium content continued to excel, driving robust growth in subscriber number and membership revenue. Our record-breaking drama series Story of Yanxi Palace turned out to be a mega-hit for the entire summer, demonstrating our strong capabilities and potentials in producing high-quality premium content. Leveraging our extensive content offerings and expanding distribution network, we are also continuously improving and diversifying our business monetization. We remain dedicated to applying advanced technology to further enhance our platform and refine our ecosystem to generate long-term growth for shareholders.” 

“We had a good quarter with total revenues increasing 48% year-over-year to RMB6.9 billion,” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. “Membership services performed particularly well and became the biggest revenue contributor for the Company. While we faced some margin pressure during the quarter due to higher investment in content, we saw this as necessary and within our expectations as we are going through a transition period toward building an optimized and healthier content ecosystem which will position us well for the future.”

Financial Guidance

For the fourth quarter of 2018, iQIYI expects total net revenues to be between RMB6.48 billion (US$943.5 million) and RMB6.75 billion (US$982.8 million), representing a 43% to 49% increase from the same period in 2017. This forecast reflects iQIYI's current and preliminary view, which is subject to substantial uncertainty.

BEIJING, Sept. 28, 2018 /PRNewswire/ -- iQIYI Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China today announced the launch of the Gehua Little Fruit Set Top Box, developed in partnership with Baidu, Inc. (BIDU) ("Baidu"), the leading Chinese language Internet search provider, and Beijing Gehua CATV Network Co., Ltd. (600037.SS) ("BGCTV"), a premier cable TV network in China.

BEIJING, Sept. 5, 2018 /PRNewswire/ -- iQIYI Inc. (NASDAQ : IQ ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that iQIYI Sports, a joint venture between iQIYI and Super Sports Media, has successfully completed its Series A round of financing, securing a total of RMB 850 million in investment.

The second tranche of financing announced today secured an investment of RMB 350 million from both China Sports Capital, a joint venture between CMC Capital Partners and Sequoia Capital, and Yao Capital. This followed an initial tranche of RMB 500 million financing completed earlier last month, provided by IDG Capital and private equity firm Hui Ying Bo Run.

"We are delighted that iQIYI Sports, our joint venture with Super Sports Media, has successfully completed its Series A round of financing," said Gong Yu, founder and CEO of iQIYI. "Over the last few years, China's entertainment industry has grown at spectacular pace and iQIYI has been looking into expanding our offerings in this area for a long time. Our partnership with Super Sports Media in this exciting new joint venture is the ideal combination of both companies' strengths, stimulating growth across the industry through the creation of an online platform which understands content, our users and our business partners. iQIYI is committed to supporting the growth of the iQIYI Sports and will continue contribute our wealth of existing IP and resources to ensure our users receive a level of sports entertainment experience unmatched by any other platform."

"With the support of these new shareholders, iQIYI Sports is in the ideal position to change the landscape of online sports entertainment in China," said Yu Lingxiao, CEO of iQIYI Sports. "The combination of iQIYI's advanced technological capabilities and vast numbers of subscribing members with Super Sports Media's many years of experience in pay-per-view sports entertainment creates a partnership of unprecedented strength in industry. The successful completion of our Series A financing is a clear illustration of this new venture's potential and we are excited to be bringing our users better content and service of sports entertainment."

iQIYI Sports, a new online sports media platform, is a joint venture between iQIYI, Inc. and Super Sports Media, a subsidiary of DDMC Group. As the Chinese sports industry has matured over the past few years, the viewing habits of sports fans have changed, providing a powerful opportunity for the newly founded iQIYI Sports platform. The upgraded iQIYI Sports app will bring its subscribers top flight coverage of association football, golf, and tennis competitions, including the Premier League, the UEFA Nations League, the Masters, the British Open, the US Open, the PGA Championship, the PGA Tour, the Australian Open, the ATP World Tour and the WTA Tour. iQIYI Sports subscribers will soon also be able to enjoy La Liga, Euro 2020 and other leading football competitions such as the AFC Champions League, AFC Asian Cup and FIFA World Cup Qualification.

BEIJING, Aug. 26, 2018 /PRNewswire/ -- iQIYI Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced it has come to a far-reaching new partnership with Ctrip (CTRP), Asia's largest online travel agency and the second largest in the world.

Under the agreement, iQIYI V7 VIP members will be able to enjoy all of the exclusive perks available to Ctrip's Prime Members, including discounts on hotel bookings and entry to sightseeing attractions, fast track airport security service, priority access for purchasing train tickets, as well as experience the comfort of Ctrip's airport VIP lounges. The benefits will be available to V7 VIP members for one year after activation and the offer can be redeemed before June 30, 2019.

"V7" is the highest of iQIYI's seven levels of VIP membership ranking for users. Higher levels of membership are reached by accumulating points, calculated through factors such as membership payment status, number of logins and amount of content viewed. The new partnership with Ctrip will add to the extensive list of benefits available exclusively to iQIYI V7 VIP members, which already includes discounted cinema tickets, priority attendance at star-studded offline events and exclusive showings of new blockbusters.

"The announcement of iQIYI's new partnership with Ctrip represents an exciting coming together of China's leading entertainment platform and China's leading online travel agency," said Yang Xianghua, Senior Vice President of iQIYI. "These additional benefits are the perfect way to thank our loyal iQIYI V7 VIP members, and are a major part of our drive to improve the user experience and benefits available to all users of our comprehensive entertainment platform."

According to iQIYI's 2018 Q2 financial results, the total number of subscribing members now stands at over 67.1 million as of June 30th, 2018, up 75% from a year ago. The partnership with Ctrip follows the joint membership program announced with JD.com in April this year.