iQIYI, Inc. (NASDAQ: IQ) confirmed that it has decided to upgrade its collaboration model for online film distribution. Cloud Cinema Premiere and Subscription Premiere are two new distribution models included in the new concept. Both the Premium Video on Demand (PVOD) and Subscription Video on Demand (SVOD) forms of streaming will earn income for films published under the Cloud Cinema Premiere format.
iQIYI’s new collaborative approach offers a total shift from film classifications. The main goal is to ensure that all films receive equitable distribution support before their release. iQIYI will assign promotional resources based on viewing time and user reviews as the films become available online, enhancing promotional efficiency.
Furthermore, in China’s film and television industry, the improved model supports the launch of a Direct-to-Consumer (DTC) model. The DTC model is not only a new revenue stream for streaming platforms and content creators, but it is also an unavoidable progressive trend as the film and television industry strives for sustainable expansion and business model improvement.
Meanwhile, money divided with film producers for films published under the Subscription Premiere model would be decided only by users’ viewing time, rather than the numerous fee category classifications iQIYI previously assigned to particular films. China’s online video viewers hit 975 million in 2021, according to the China Internet Network Information Center (CNNIC).
The commercial success of the over 20 movies released through the iQIYI Cloud Cinema Premiere model speaks to its huge market potential as the global film industry seeks new growth drivers. iQIYI led the way among Chinese video streaming platforms in experimenting with the PVOD model, opening up a new distribution channel for the entire industry. In 2021, nine films were published on the iQIYI platform using the PVOD concept, including Dreams of Getting Rich and Northeastern Bro.