iQIYI and Netflix Sign Licensing Agreement
iQIYI and Netflix have signed a content licensing agreement for a subset of Netflix original series like Stranger Things and Black Mirror. Though expectations of our deal are modest in scope, Netflix says it is “delighted that consumers will be able to enjoy these highly-popular series on iQIYI, the leading online video platform in China. Our cooperation will be subject to the relevant regulations on online streaming of imported drama and film content in China.”
Founded in Beijing in April 2010 by Baidu, China’s largest online search engine, and Providence Equity Partners, iQIYI is one of the top online video platforms in China to stream both licensed and original movies, television series, variety shows, cartoons and other content. SIn 2013, Baidu purchased the online video business of PPStream Inc. for US$370 million, which became a subsidiary of iQIYI. In 2014, the site launched its film production division, iQIYI Motion Pictures.
A meeting in March 2017 at the Office of the Ministry of Finance and the Arts in Beijing saw presentations by Deputy Director of Beijing Capital Office, Dong Dianyi; Deputy General Manager of Beijing Capital Investment Group, Yu Aijing; Senior Vice President of iQIYI, Yang Xianghua; and Executive Director of Avic Arts, Wang Zhaonan. The meeting was attended by over 100 institutional investors, network video companies and media representatives, and was held to discuss network video industry trends and investment opportunities.
At the meeting, Yang Qihua, Senior Vice President of iQIYI, delivered a keynote speech to review the current state of play and market prospects for network movie and network drama. He expressed a desire to act as a bridge between the investors and the cooperative enterprises, “So that good money can find a good network video project”.
According to Yang Xianghua, the network’s budget is 3.5 times that of 2015, and the market size is expected to exceed RMB 3 billion (USD$434 million) in 2017.
“The network movie and network play is the future development trend of film and television content, and the market has great potential. As an investor, we are very willing to support the purpose of open mind and win-win situation,” said Ms. Yu Aijing, deputy general manager of Beijing Wenzhao Group.