The service was began in 2010 by search large Baidu, which owns a dominant 70 % of the corporate. Xiaomi (eight %) and Hillhouse (six %) are the opposite main names which have backed it.
A Netflix-like service that embrace paid and ad-supported content material, iQiyi claims to have over 50 million paying subscribers. The corporate says its content material will get 420 million month-to-month viewers, with as many as 126 million tuning in each day.
The corporate is rivaled by Tencent’s video service and Alibaba-owned Youku Tudou. A current report from eMarketer urged that iQiyi holds a slim lead available in the market however there’s lots to play for. The Chinese language video market forecast to develop from 22 billion RMB ($three.5 billion) in 2015 to 96.2 billion ($15.2 billion) RMB by 2020, in response to IHS Markit.
The iQiyi story is considered one of excessive progress but in addition massive losses. The corporate recorded income of 17.four billion RMB in 2017 ($2.7 billion) which represented a 55 % year-on-year bounce and was tripled its income in 2015.
It has, nevertheless, been unprofitable since day one. iQiyi misplaced three.7 billion RMB ($574 million) in 2017, as working losses widened from three.1 billion RMB and a pair of.6 billion RMB in 2016 and 2015, respectively.
That’s the place Baidu is available in, and the search engine large has propped iQiyi up financially and likewise let the corporate lean on its synthetic intelligence know-how and faucet into its DuerOS sensible working system. Certainly, Baidu gave the corporate an interest-free $100 million mortgage final month, in response to the submitting.
It isn’t but confirmed precisely how a lot iQiyi will increase from its public itemizing, however the firm mentioned the first goal of the IPO is to develop its content material catalog utilizing half of the proceeds. It additionally plans to develop its know-how and refill on working capital which might be used to fund acquisitions.
The iQiyi itemizing follows U.S.-based IPOs from Huami, Xiaomi’s wearables companion, in February and Tencent-backed search engine Sogou final November. Others which can be anticipated to observe go well with embrace Xiaomi and Tencent’s music division.