iQiyi is Baidu's YouTube-style video streaming service offering large-scale video content to Chinese users. The service competes with Alibaba-owned Youku Tudou, Sohu, and Tencent in a crowded market. iQiyi claims 481 million users and 5.579 billion hours of time spent on its service each month. Management says the newly raised capital will be spent on acquiring content and upgrading its IP ecosystem to detect illegal content. The company is positioning itself for a push toward subscription-based video and to acquire overseas and national programming to differentiate from rivals. A previously planned spinout and IPO speculation did not proceed, and this financing is the chosen path to grow the business. iQiyi operates an online video platform that streams TV series, news broadcasts and other video content, and it also develops original productions through iQiyi Motion Pictures and Hauce iQiyi Company. In September 2014 it reported roughly 450 million active users who spent 2.2 billion hours watching videos on the platform. Over 60% of iQiyi’s traffic comes from mobile devices, and the company aims to grow mobile usage further by targeting Xiaomi’s reported 85 million MIUI users. The service is positioned to expand distribution via partnerships with device makers and smart-TV ecosystems. iQiyi is majority-owned by Baidu, which the article says has increased its investment in the company (amount unspecified). The platform is pursuing deeper cooperation on content and mobile-focused technology with strategic partners. Qiyi is an independently operated video website created by Baidu that aims to be a high-definition online video platform offering licensed, professional video content free to users and monetized primarily through advertising. The site emphasizes lawful distribution, strict copyright protection, and adherence to government regulations for professionally produced media and entertainment. Qiyi says it will offer diversified licensed content across channels including TV shows, movies, documentaries, cartoons, music, and variety shows, and seeks to develop additional profit models supported by users and advertisers. Baidu registered the qiyi.com domain for the venture and describes Qiyi’s goals as delivering high customer satisfaction and a strong viewing experience. The company has received external investment activity: Providence Equity Partners invested $50 million, and Reuters reported the joint venture may have received roughly $60 million in private equity with Baidu contributing about $10 million. The broader market context cited includes an estimated 518 million Chinese Internet users in 2010 and an online video market of about 162 million yuan in Q3 2009, with analysts expecting growth in coming years.

Total raised

$1.9B

Funding rounds

3

Latest round

Convertible Note

Latest activity

Feb 2017