iQIYI, Inc. (IQ): Business Model Canvas [Dec-2025 Updated]

You're looking to see how iQIYI, Inc. actually makes its money, and honestly, after two decades analyzing these giants, I can tell you it boils down to a high-stakes content gamble. We see the core engine is its Membership Services Revenue, which hit RMB 4.21 billion in Q3 2025, but that's directly pitted against massive spending-content costs alone were RMB 4 billion that same quarter. This canvas breaks down exactly how they balance that premium content investment with their global distribution and AI-driven personalization to keep subscribers paying. Dive in below to see the nine building blocks that define their strategy right now.

iQIYI, Inc. (IQ) - Canvas Business Model: Key Partnerships

You're looking at how iQIYI, Inc. (IQ) builds value through its network of external players, which is crucial for international expansion and content delivery. These aren't just casual agreements; they are strategic integrations that directly impact subscriber reach and monetization efficiency. Here's the quick math on the key relationships as of late 2025.

Telecom Operators like Telkomsel for Bundled Services and Distribution in Southeast Asia

The partnership with Telkomsel, Indonesia's largest telecom provider, is a prime example of deep regional integration. This alliance, formalized in mid-2025, focuses on bundled service offerings and joint marketing to accelerate premium content availability across Indonesia. For instance, specific promotional bundles launched in July 2025 offered Telkomsel Halo and IndiHome customers access to iQIYI Premium for just Rupiah 10 per month for the initial two months, before auto-recurring at the standard rate of Rupiah 59,000 per month starting the third month. Also, other Telkomsel segments, like SIMPATI and by.U, received a special deal of pay for one month, get three months access to iQIYI Standard. These packages sometimes included data allowances, such as a 30-day option with 2GB data included. This strategy directly leverages Telkomsel's expansive distribution infrastructure to reach diverse user segments, from general users up to VIP subscribers.

Digital Wallet Platforms such as Snaplii for North American VIP Membership Sales

To penetrate the North American market, iQIYI International partnered with the digital wallet platform Snaplii, starting November 1, 2025, for Quarterly or Annual VIP membership sales in the United States and Canada. Snaplii, which reports saving its 250,000-plus active users over $2 million to date, offers instant rewards. New Snaplii users can even receive $15 instantly upon joining. This partnership is designed to enrich Snaplii's lifestyle offerings while providing iQIYI access to a new, value-conscious consumer base in the region.

Global Tech Firms (Google, ByteDance) for AI Content and Innovation Projects

iQIYI, Inc. is actively collaborating with major global tech players to drive innovation, particularly in artificial intelligence. A notable example is the launch of a global AI short film competition, a joint effort with Google and ByteDance. This aligns with the broader tech ecosystem where ByteDance, for instance, projected an AI research and development investment of $3.5 billion for 2025. Furthermore, iQIYI pioneered an AI Theater in partnership with Oscar-winning cinematographer Peter Pau, showcasing a commitment to next-generation content tools. These tech alliances help iQIYI enhance content production efficiency and ad creativity.

Independent Production Houses for Local Content Co-production in Markets like Malaysia

Deepening local content creation is a core strategy, especially in Southeast Asia. In Indonesia, for example, iQIYI partnered with renowned local studios like Leo Pictures and Hitmaker Studios to launch original series such as 'Tukar Ranjang' and 'Bercinta Dengan Maut.' The success of self-invested content is evident; the original movie 'The Shadow's Edge' grossed over RMB 1.2 billion at the box office. This model of co-production with local houses is key to building brand influence outside of Mainland China.

Advertisers and Sponsors for Targeted Ad Campaigns Across Premium Content

Advertisers are a vital component of the revenue mix, though this segment has seen fluctuations. For the third quarter ending September 30, 2025, brand net ads recorded double-digit year-over-year growth, indicating a strong rebound in advertiser confidence tied to premium content. In Q3 2025, over 60 percent of this brand advertising revenue came directly from content-related ad solutions. To give you a sense of scale, online advertising services revenue for Q1 2025 was RMB 1.33 billion (US$183.0 million), and for Q2 2025, it was RMB 1.27 billion (US$177.6 million). The focus is clearly on leveraging high-performing original content for targeted ad placements.

Here's a snapshot of the advertising revenue performance from the first three quarters of 2025:

You should track the Q4 advertising spend closely, especially given the stated double-digit annual growth in brand net ads for Q3.

iQIYI, Inc. (IQ) - Canvas Business Model: Key Activities

You're looking at the engine room of iQIYI, Inc. (IQ), the core things they have to do well to make this whole model work. It's all about content creation, tech integration, global reach, and milking that intellectual property (IP) for every last drop of value. Let's break down the numbers from their latest reports, specifically Q3 2025.

Producing high-quality, exclusive original long-form and micro-drama content

This is the heart of the operation. iQIYI, Inc. has to keep the hits coming, both the big, binge-worthy sagas and the quick, shareable bites. Their commitment to premium content is clear in their spending; for the third quarter of 2025, the content cost hit RMB 4 billion, which was up 7% sequentially as they launched a more diverse, premium slate. The focus on long-form dramas keeps them dominant domestically, securing the top viewership market share for long-form dramas in Q3 2025, according to Enlightent data. Still, the short-form push is massive; by the first eight months of 2025, membership revenue from mini-dramas jumped 140% YoY. Back in Q1 2025, daily time spent on their micro-dramas had already surged by 300%. They've built out a massive library, too, with their mini-drama portfolio reaching over 10,000 titles, capturing 95% of leading mini-drama content providers as of early 2025.

The theatrical side also plays a role in IP value. For example, the original movie The Shadow's Edge grossed over RMB 1.2 billion. Plus, their online movies have remained in the market's top position for 15 consecutive quarters. It's a dual strategy: high-cost, high-reward blockbusters and high-volume, high-engagement short-form.

Developing and applying AI technology for content creation and user recommendations

Technology isn't just a support function here; it's baked into the creative process and user experience. iQIYI, Inc. is heavily investing in AI to drive efficiency and engagement. On the creation side, for pre-production on romance dramas, they achieved a breakthrough in qualitative script analysis. On set, for projects like The Great Nobody two, AI boosted the efficiency of digital asset generation by over 10 fold, which directly cuts costs and shortens production time. For user interaction, AI-powered features like iJump Talkout and Touhou World are making a difference; in Q2 2025, AI-driven ads showed a 20% higher click-through rate compared to traditional ads. This tech focus is one of the core areas of investment right now, according to management.

Managing and optimizing the global streaming platform and cloud infrastructure

Running a platform that handles this volume of content and users requires serious infrastructure management. While specific cloud spend isn't always public, the scale of their content operation hints at the demands. Their IQ Stage platform, used for virtual production, features over 20 patented technologies and helped shows like My Journey to You achieve a 30% production efficiency increase, which speaks to infrastructure optimization. The platform itself is segmented to maximize monetization: the main iQIYI app focuses on paid subscriptions, while the iQIYI Lite app primarily features free, ad-supported mini-dramas. This dual structure helps manage different user acquisition and monetization paths.

International market expansion and content localization efforts

This is a major growth driver. The overseas business is solidifying its role as a key engine. In Q3 2025, membership revenue outside Mainland China surged by over 40% year-over-year. The success in emerging markets is particularly striking: membership revenue in places like Brazil, Mexico, and Indonesia more than doubled year-over-year in Q3 2025. They are moving beyond just exporting Chinese content to deep localization, evidenced by Thai series like Soul Reborn outperforming domestic revenue in those regions. They are actively expanding multilingual mini-drama projects in English, Thai, Korean, and Indonesian to cater to regional tastes.

Monetizing intellectual property (IP) through spin-offs and offline ventures

iQIYI, Inc. is actively moving its business model from purely online to an IP-centric ecosystem that includes offline and consumer products. The experience business, centered on IP-based consumer products, saw its revenue more than double year-over-year recently, driven by collectible cards from popular dramas. In Q2 2025, self-operated live table trading cards generated over RMB 100 million in GMV in the first half of the year. Furthermore, their innovative revenue-sharing model for films is gaining traction; for instance, A Cool Fish 2 generated over RMB 18 million in shared revenue within two months. This shows a clear strategy to amplify IP value beyond subscription fees.

Here's a quick look at the key financial outputs that reflect the success of these activities in Q3 2025:

iQIYI, Inc. (IQ) - Canvas Business Model: Key Resources

You're looking at the core assets that let iQIYI, Inc. operate and compete in the massive Chinese online entertainment space. These aren't just abstract ideas; they are measurable things, content libraries, and proprietary tech stacks.

Extensive library of licensed and original Asian dramas, movies, and variety shows

The sheer volume and quality of content are central. iQIYI, Inc. focuses on an integrated 'long + short' content strategy. The scale of their short-form offering is notable, with their mini-drama portfolio reaching over 10,000 titles as of early 2025. Furthermore, they announced over 400 new titles scheduled for release across various formats, reinforcing their pipeline. Success is measured by performance metrics, too; for instance, the original movie 'The Shadow's Edge' grossed over RMB 1.2 billion. The long-form drama 'Coroner's Diary' became a national hit, with its content popularity index exceeding 10,000.

Proprietary AI and big data algorithms for personalized user experience

Technology is a clear differentiator, powered by advanced AI and big data analytics. iQIYI, Inc. has deployed features like 'Skip Watch,' an AI-powered tool that analyzes video frames to let users jump between narrative highlights. This technology helps generate multiple versions of content, such as full-length or 20-minute quick cuts, tailored to individual preferences. On the engagement front, nearly 1,000 AI-driven IP characters have held over one billion conversations with users as of April 2025. The IQ Stage platform itself incorporates over 20 patented technologies, which improved production efficiency by 30% on certain shows.

Strong brand recognition and market leadership in the Chinese online video sector

Market position is validated by viewership data. As of the third quarter of 2025, iQIYI, Inc. secured the top position in total viewership market share for long-form dramas, according to Enlightened Data. This leadership extends to other formats; they have maintained the top viewership market share for online movies for 15 consecutive quarters. The international segment is also a growing asset, with annual international membership revenue growth exceeding 40%, and markets like Mexico and Indonesia more than doubling year over year.

Financial capital to fund content production, with cash and equivalents at RMB 4.9 billion (Q3 2025)

Liquidity supports the content investment strategy. As of the end of the third quarter of 2025, iQIYI, Inc. reported cash, cash equivalents, restricted cash, short-term investments, and long-term restricted cash totaling RMB 4.9 billion. This financial cushion is essential for funding the premium content slate, which saw content costs rise to RMB 4 billion in that same quarter.

Talent pool of content creators, producers, and technology experts

The human capital drives the content and technology advantages. This resource pool is responsible for the success of both their prestige long-form projects and their high-volume short-form initiatives. The success of their content strategy is evident in specific performance indicators:

• Drama 'This Thriving Land' popularity index exceeded 10,000.
• Micro-drama 'How Dare You!?' surpassed 800 million views.
• The company is actively pursuing initiatives like the 'Thousand Mini-Dramas Initiative' and 'Hundred Short-Dramas Initiative.'

Here's a quick look at the financial backing for these operations as of Q3 2025:

iQIYI, Inc. (IQ) - Canvas Business Model: Value Propositions

You're looking at the core reasons why subscribers and partners choose iQIYI, Inc. (IQ) over the competition as of late 2025. It's about premium access, strategic content depth, and smart technology integration.

Premium, exclusive, and ad-free viewing experience for VIP subscribers.

The value proposition here centers on uninterrupted, high-tier access. For your VIP subscribers, this means escaping the ad load that plagues other tiers. Financially, this segment is crucial; in the third quarter of 2025, membership services revenue reached RMB 4.2 billion, marking a 3% sequential increase. This revenue stream is supported by a focus on monetizing high-value users, exemplified by premium tiers like the "S Diamond" plan, which bundles exclusive content with offline perks. Furthermore, the international segment shows significant pull, with membership revenue outside Mainland China growing by around 40% annually.

Diverse, high-quality content across specialized 'Theaters' (e.g., 'Light On' for thrillers).

iQIYI, Inc. (IQ) anchors its long-form strategy around specialized content hubs, ensuring genre depth and quality. This structure helps maintain leadership in the domestic market, holding the top position in total drama viewership market share for the third quarter of 2025. The platform announced a slate of over 400 new titles for the 2025-2026 period, spanning various formats.

The core long-form strategy is built upon five signature drama brands, or 'Theaters':

Dual content strategy: long-form prestige dramas plus high-growth short-form micro-dramas.

The platform is executing a calculated 'Long + Short' strategy to capture fragmented attention. While prestige long-form dramas remain the core, short-form content is explicitly positioned as a new growth engine. The success of this pivot is evident in early 2025 data: daily time spent on micro-dramas surged by 300%, with daily unique users rising by 110% compared to December 2024. The micro-drama library has expanded to over 20,000 titles. This approach balances binge-watching appeal with hyper-accessible, snackable entertainment.

Access to a vast, localized library of Chinese and pan-Asian entertainment.

Value extends beyond domestic hits through aggressive international expansion and localization. Overseas membership revenue has seen robust growth, increasing by over 40% annually. Key growth markets like Brazil, Mexico, and Indonesia have shown membership revenue growth exceeding 80% year-over-year. This is fueled by successful localization, such as co-producing localized versions of popular formats like Running Man Thailand. The company is actively building its IP across formats and regions to resonate with global audiences.

Personalized content discovery driven by advanced AI recommendations.

Technological integration directly enhances the viewing experience. iQIYI, Inc. (IQ) deploys AI to offer highly tailored content navigation. The 'Skip Watch' feature, for example, uses AI to identify narrative highlights, letting users swipe to jump between key moments in long-form content. This system improves as user data accumulates, allowing the AI model to generate multiple content versions-like 35-minute edits or 20-minute quick cuts-tailored to individual preferences. This focus on intelligent, personalized discovery is a key differentiator.

You should track the impact of these content investments. Content costs for Q3 2025 were RMB 4 billion, up 7% sequentially, reflecting the investment in this diverse slate. Finance: draft 13-week cash view by Friday.

iQIYI, Inc. (IQ) - Canvas Business Model: Customer Relationships

Automated, AI-driven personalization for content discovery and retention.

iQIYI, Inc. (IQ) deploys AI to enhance user interaction, with features like iJump Talkout contributing to a 20% higher click-through rate for AI-driven advertisements compared to traditional ads in the second quarter of 2025. AI is also used in production, where it boosted the efficiency of digital asset generation by over 10 fold on the set of 'The Great Nobody two.' The focus on shorter content formats has seen significant user adoption; user engagement with micro-dramas tripled between December 2024 and April 2025. The micro-drama library expanded to over 20,000 titles by September 2025. Blockbuster content, such as the original drama 'This Thriving Land,' achieved an iQIYI popularity index score exceeding 10,000 in 2025.

Self-service subscription management via app and website.

The membership services revenue for the third quarter ended September 30, 2025, was RMB 4.21 billion (US$591.7 million). For the second quarter ended June 30, 2025, membership services revenue was RMB 4.09 billion (US$571.0 million), representing a 9% year-over-year decrease. The company's strategy focuses on monetizing high-value users through tiered offerings; the premium S-Diamond Plan drove upgrades, accounting for 78% of its new subscription revenue in Q2 2025. The overall membership product system is streamlined into five distinct membership products designed to meet individual and family needs.

Exclusive fan engagement and celebrity-led events to build community.

iQIYI, Inc. (IQ) extends its intellectual property (IP) engagement through offline experiences. The company operates 58 immersive theaters across 31 cities as of late 2025, with a new iQIYI Land planned for Beijing's Wangfujing district. Monetization from IP-based consumer products saw self-operated live table trading cards generate over RMB 100 million in Gross Merchandise Volume (GMV) in the first half of 2025. In the second quarter of 2025 alone, the company hosted three events that drew widespread engagement from users, media partners, and advertisers.

Dedicated sales and account management for large brand advertisers.

Online advertising services revenue for Q3 2025 was RMB 1.2 billion, a 2% decrease sequentially from Q2 2025's RMB 1.27 billion (US$177.6 million). Despite the sequential dip, brand net ads recorded double-digit annual growth in Q3 2025. The company is capitalizing on premium content for ad sales, planning to maximize ad revenue from campaigns like the Double 11 shopping festival and new smartphone launches.

Here's a quick look at some key figures from the recent quarters:

The focus on international expansion is also a key relationship driver, with overseas membership revenue growing by 35% year-over-year in Q2 2025, and specific markets like Brazil and Indonesia reporting annual growth over 80%.

• The company's portfolio of micro-dramas saw double-digit growth in viewer engagement in the first half of 2025.
• Non-GAAP operating income for Q2 2025 was RMB 58.7 million (US$8.2 million).
• Non-GAAP operating loss for Q3 2025 was RMB 21.9 million.
• Content costs for Q3 2025 reached RMB 4 billion, up 7% sequentially.

iQIYI, Inc. (IQ) - Canvas Business Model: Channels

You're looking at how iQIYI, Inc. gets its premium content and subscription offers in front of viewers. This is all about the digital and physical pathways to the audience, which is critical when you're managing a massive user base that spans domestic and international markets.

The core of the distribution strategy remains the direct-to-consumer digital presence, but the recent push is heavily focused on embedding the service within established local ecosystems, especially outside of Mainland China. The international business, for instance, saw overseas membership revenue increase by over 40% annually as of Q3 2025.

Here's a quick look at the latest reported financial snapshot from the third quarter ending September 30, 2025, which reflects the performance across these channels:

The growth in Content Distribution Revenue at 48% sequentially is notable, reflecting strong monetization from original theatrical movie investments and growing drama transactions, which is a key channel for monetizing IP outside of direct subscriptions.

iQIYI, Inc. maintains its presence across the primary digital access points:

• iQIYI Mobile Application (iOS and Android)
• Web Browser access via www.iQ.com
• Smart TV applications and Over-The-Top (OTT) boxes

While older data from 2019 showed 454.5 million mobile Monthly Active Users (MAUs) and 135.4 million mobile Daily Active Users (DAUs), the platform's overall reach as of mid-2025 is cited as over 500 million MAUs globally. The international service is accessible in over 200 countries through these digital means.

The strategic focus for expanding reach, particularly for international subscription sales, involves deep integration with local infrastructure providers. This is how you get around the friction of direct-to-consumer payment gateways.

Key strategic distribution partnerships as of late 2025 include:

The partnership with Snaplii specifically addresses the channel for international subscription sales in North America, allowing users in the United States and Canada to purchase VIP memberships starting November 1, 2025. This move helps bypass traditional app store payment friction for that segment.

For your reference on membership tiers driving this channel revenue, the premium S-Diamond Plan drove 78% of new subscription revenue in Q2 2025, indicating that high-value channel offerings are key to membership growth.

iQIYI, Inc. (IQ) - Canvas Business Model: Customer Segments

Mass market Chinese-speaking users globally seeking premium video entertainment form the core base, evidenced by iQIYI maintaining the top position in total drama viewership market share in Mainland China for the third quarter of 2025, according to Enlightent Data. This segment drives the bulk of the platform's subscription revenue, which was RMB 4.21 billion in the third quarter of 2025.

International viewers, especially in Southeast Asia, represent a significant growth vector, regarded as iQIYI's second growth curve. Membership revenue outside Mainland China saw robust growth, exceeding 40 percent year-over-year in the third quarter of 2025. Markets such as Brazil, Mexico, and Indonesia more than doubled their membership revenue year-over-year.

High-value, premium subscribers opting for tiers like the 'S Diamond' plan are a strategic focus, suggesting a shift toward monetizing high-value users rather than just chasing scale. While specific tier breakdowns for Q3 2025 aren't explicit, the overall Membership Services revenue reached RMB 4.21 billion in Q3 2025, up 3 percent sequentially.

Brand advertisers and agencies target the engaged audience demographics, which are drawn by high-quality content like the hit drama "Living Everything" and the theatrical blockbuster "Catching the Wind," which topped RMB 1.2 billion in box office revenue. Online advertising services revenue for Q3 2025 was RMB 1.24 billion. Brand advertising revenue specifically recorded double-digit year-over-year growth, with over 60 percent coming from content-related ad solutions.

Here's a quick look at the financial scale tied to these customer groups for the third quarter of 2025:

Key characteristics defining these segments include:

• Content preference for long-form dramas securing the top viewership market share.
• High engagement shown by a surge in bullet comments, up 118 percent year-on-year during the Chinese New Year period.
• Strong adoption of micro-dramas as the second largest category for new overseas subscriptions by Q2 2025.
• Growing expectation for instant access to premium cinematic experiences via streaming.
• Increasing use of AI-powered tools, with over 70 percent of promotional material for overseas content generated using AI in Q3 2025.

iQIYI, Inc. (IQ) - Canvas Business Model: Cost Structure

You're looking at the expense side of iQIYI, Inc. (IQ)'s operations as of late 2025, which is heavily weighted toward content acquisition and technology to keep that content flowing to a massive user base. Honestly, content is the single biggest drain on the wallet.

Content costs, the largest expense, were RMB 4 billion in Q3 2025 alone.

Content costs represent the most significant outlay for iQIYI, Inc. For the third quarter of 2025, this expense hit RMB 4 billion. This was an increase of 7% sequentially, which management attributed to launching a more diverse selection of premium content during the peak summer season. To give you a point of comparison, in the second quarter of 2025, content costs were slightly lower at RMB 3.78 billion, which represented an 8% year-over-year decrease, largely due to a lighter content slate in that quarter. The company's total cost of revenues in Q2 2025 was RMB 5.29 billion.

Technology and R&D expenses for streaming infrastructure and AI development.

Investment in the underlying technology is substantial, covering streaming infrastructure and the ongoing development of AI tools. For the third quarter of 2025, Research and Development (R&D) expenses were reported at RMB 412.1 million, or US$57.9 million. This figure actually represented an 8% decrease year-over-year, primarily due to a decline in personnel-related compensation expenses. The AI strategy is central here, with AI being employed across operations like marketing, content translation, and creative development.

Bandwidth and server costs for content delivery across a massive user base.

The costs associated with delivering content-bandwidth and server upkeep-are embedded within the Cost of Revenues and Capital Expenditures (CapEx). While a specific line item for bandwidth isn't detailed in the latest reports, CapEx in Q2 2025 was incurred primarily in connection with construction in process, computers, and servers. The total operating expenses for iQIYI, Inc. in Q3 2025 were RMB 1.3 billion, down 3% sequentially, benefiting from disciplined expense management.

Selling, General, and Administrative (SG&A) expenses, which were RMB 959.6 million in Q2 2025.

SG&A captures the overhead of running the business, including sales efforts. For the second quarter of 2025, these expenses totaled RMB 959.6 million, which was a 1% year-over-year decrease. You have to remember that marketing and user acquisition costs are a major driver within this bucket, even as the company focuses on efficiency.

Marketing and user acquisition costs for domestic and international growth.

Marketing spend is necessary to drive the membership services revenue, which reached RMB 4.2 billion in Q3 2025. International membership revenue growth was a highlight, exceeding 40% annual growth in Q3 2025, with markets like Brazil, Mexico, and Indonesia more than doubling year-over-year. This global push requires marketing dollars, though specific user acquisition spend is aggregated within the SG&A figures.

Here's a quick look at the most recent reported cost components:

The primary cost drivers you need to watch are:

• Content Investment: The RMB 4 billion quarterly spend on premium content.
• Technology Scaling: The RMB 412.1 million R&D spend, focused on AI.
• Operational Overhead: The RMB 959.6 million in SG&A for Q2 2025, which includes selling efforts.
• International Market Spend: Supporting growth where international membership revenue growth exceeded 40% annually.

Finance: draft 13-week cash view by Friday.

iQIYI, Inc. (IQ) - Canvas Business Model: Revenue Streams

You're looking at how iQIYI, Inc. actually brings in the money, which is always the most critical part of any business model review. Here's the quick math on their Q3 2025 revenue breakdown, which really shows where their focus is right now.

The total revenue for iQIYI in Q3 2025 was reported at RMB 6.7 billion, showing a slight sequential increase of 1% over Q2 2025. Still, the composition of that revenue tells a deeper story about subscriber value versus advertiser spend.

Membership Services Revenue

This is definitely the core stream, the engine room of iQIYI, Inc.'s financial health. For Q3 2025, this segment hit RMB 4.21 billion, which was up 3% sequentially. That growth was largely fueled by the summer slate, especially original blockbuster dramas and the theatrical megahit, Nezha 2. Honestly, keeping subscribers happy with must-watch content is their primary lever for predictable income.

The international membership business is also showing serious traction, with membership revenue overseas growing over 40% year-over-year. In emerging markets like Brazil, Mexico, and Indonesia, that growth was even more dramatic, surging by more than 100% year-over-year, signaling the maturity of what they call their second growth curve.

Online Advertising Services Revenue

The advertising piece came in at RMB 1.2 billion for the quarter. This was a slight dip of 2% sequentially because the prior quarter benefited from a major advertising campaign that didn't repeat in Q3. Brand net ads, however, recorded double-digit annual growth, suggesting that premium content still draws strong advertiser interest, particularly when tied to major releases.

The revenue here is driven by a mix of ad types:

• Advertising revenue from premium content.
• AI-driven ad solutions.
• Brand advertising, which showed the double-digit annual growth.

Content Distribution Revenue

This stream saw the most explosive sequential growth, jumping 48% to reach RMB 644.5 million in Q3 2025. This is where licensing original intellectual property (IP) to third parties really pays off, and it's a smart way to monetize content beyond just platform views.

The significant increase was mainly driven by two things:

• The strong distribution performance of the original theatrical movie invested by iQIYI, Inc., such as The Shadow's Edge which grossed over RMB 1.2 billion at the box office.
• The growing transactions for dramas, including the innovative revenue sharing model launched in Q2.

Other Revenues

This bucket, which includes various IP-related monetization efforts, was RMB 585 million, down 29% sequentially. This segment is where you see the company testing new avenues for their IP ecosystem, which is a key strategic focus for management.

Transactional revenue is a key component here, specifically:

• Transactional revenue from movie distribution, like early access content purchases.
• Monetization from IP-based consumer products.
• Revenue from live streaming ventures.
• Activities related to theme park experiences.

The success of micro-dramas is also reflected here, with membership revenue from that format jumping 140% year-over-year in the first eight months of 2025, showing a successful diversification of content monetization.

Finance: draft 13-week cash view by Friday.