On June 22, iQiyi announced its latest membership scale data. As of 5:13 a.m. that day, the number of iQiyi members exceeded 100 million, and China's paid video market has officially entered the era of "100 million-level" members. Since 2015, iQiyi ignited the enthusiasm for payment across the Internet with its massive movie and super online drama membership services, China's video payment market has maintained a high growth rate in the past four years. The active payment of 100 million users also proves that video membership services have become an indispensable service for Chinese netizens. iQiyi believes that under the combined influence of multiple dividends such as technology, time, originality, and subject matter, China’s paid video market will continue to maintain high growth.

High-quality content drives paid growth Enriching reserves and laying a solid foundation for sustainable development

The core driving force for the growth of iQiyi’s membership business comes from its rich and diverse high-quality content, especially in the field of original content, which has always performed well and successfully launched "Tomb Raiders", "Old Nine Gates", "Story of Yanxi Palace" and "Ice Breaking" "Action", "Qi Pa Shuo", "Hip-Hop in China", "Idol Producer", "China's New Rap", "Youth with You", "Summer of the Band" and many other top contents have not only effectively increased iQiyi's market share and brand premium, but also increased users' willingness to pay and formed habits.

Currently, iQiyi has formed a stable and efficient content supply system through its own team production, external studio cooperation, film and television drama customization, equity participation or investment in film and television companies, and copyright procurement. It has built a diverse and hierarchical content matrix, including dramas, short dramas, split dramas, vertical shorts, interactive dramas and other drama types; as well as variety shows, movies, children, animation and other diverse content. In terms of content reserves in 2019, iQiyi is expected to launch more than 100 TV series, more than 1,000 new movies, more than 60 variety shows, and many entertainment and multi-industry contents. The themes and types of drama series have also shown a trend of diversified innovation. iQiyi will maintain its consistent strong quality control on themes such as suspense, youth, and realism. It will also launch "River God 2", "The Sideburns Are Not Begonia Red" and "The Master" in the future. ", "Army of Fire", "Fearless", "Little Joy", "Sword Dynasty", "Detective Chinatown", "I'll Wait for You in the Future", "Storm Dance", "July and Ansheng", "The World Owes Me a First Love", "Love in the World" and many other high-quality contents. At the same time, it also reserves many high-quality contents such as "Ping Pong", "We Are Young", "Flying Boy" and other diverse story types such as comedy, sports, and military.

Based on the rapid growth of membership development trend, iQiyi has launched a payment split model in the fields of movies, dramas, variety shows and other fields. Companies and teams with high-quality content production capabilities can directly obtain payment incentives from users through this model.

Multiple dividends continue to benefit entertainment payment, and the membership market is in a golden period of growth

Behind the first breakthrough of 100 million members is the comprehensive role of iQiyi’s content creativity, technological innovation, experience upgrading, service operations, ecological construction and other aspects. iQIYI has built rich membership experience privileges through innovations in broadcasting models such as members' first look and members' one-time viewing of full episodes, as well as cross-ecological cooperation with partners in e-commerce, hotels, travel, music and other fields. At the same time, technically, iQiyi continues to provide its members with top-notch audio-visual experiences such as Dolby Atmos and Blu-ray 1080P. Cutting-edge technologies with 5G and AI as the core also provide a steady stream of development impetus for entertainment experience upgrades. 4K high-definition viewing, 8K surround VR, and interactive mixing of movies and games are all moving from the laboratory into reality.

Research data from the iQiyi Paid Research Institute as of the first quarter of 2019 shows that users aged 24 and under currently account for the highest proportion of iQiyi’s member age structure, and users over the age of 30 are growing rapidly, with a year-on-year growth rate of more than 80%. In terms of urban coverage, first-tier, new first-tier, and second-tier cities are still the main areas for iQiyi member penetration, and the penetration growth rate of third- to fifth-tier cities has also reached a rapid growth of 30-40%. The per capita quarterly consumption amount increased by 4.0% month-on-month, and the average payment months of users within a year increased from 4 months three years ago to 8 months currently. Yang Xianghua, President of iQIYI Membership and Overseas Business Group, said, "With the continuous benefits of demographic dividend, technology dividend, time dividend, application dividend, originality dividend, and theme dividend, China's video payment market is in a golden development period in terms of membership scale and revenue growth. Whether among heavy, first-line, and young users, or among light, low-line, and older people, video membership services have strong consumer demand and further development space."