China’s iQiyi and Sony Sign Coproduction Agreement

iQiyi-Sony

Local Content Boost

iQiyi, a Chinese online video site owned by Baidu, announced a coproduction last week with Sony Pictures Television to create a three-part local-language series.

Sony Pictures Television and iQiyi first entered into a SVOD & VOD licensing agreement in 2011. This licensing agreement was the first by a Hollywood studio and a Chinese online streaming website.

While it’s somewhat common for Hollywood and Chinese companies to collaborate on promoting and co-producing English-language films, Sony’s coproduction to create local content is unique.

Sony’s Playmaker Media, with support from Australia’s Screen NSW, will begin production on the adaptation in spring 2017. iQiyi plans to make the three-part series available later in the fall.

The Chinese government and local media companies have long been interested in boosting local programming and improving production capabilities.

Inside access to a SVOD and VOD licensing agreement between iQiyi and a US-based studio that extends through 2019.

Go inside Netflix's licensing agreement with Relativity Media. Discover values for Relativity's slate of 40+ films released from 2010 to 2016.

iQiyi Content Growth

Through licensing agreements with Sony, Paramount, Universal, Lionsgate, and several European and Asian distributors, iQiyi has around 9,000 films in its library for an estimated 5 – 20 million paid subscribers.

China’s Streaming Landscape

The three largest Internet conglomerates own the top online video services – Baidu (iQiyi), Alibaba (Youku Tudou), and Tencent Video.

Baidu, known as the Google of China, launched iQiyi in 2010 with US-based Providence Equity Partners. Since launching, they have accumulated the most paid SVOD subscribers in China.

Calculating an accurate subscriber base for iQiyi is difficult. In mid-2015 the company claimed 5 million subscribers, which jumped to 10 million by year-end. In 2016, the company reported 15 and 20 million.