iQIYI's 2025 National Day Holiday Surge: Unlocking Long-Tail IP Value and Viewer Engagement in China's Streaming Market

The 2025 National Day Holiday marked a pivotal moment for iQIYI, as the platform leveraged its long-tail intellectual property (IP) and innovative content formats to drive record engagement and revenue. With China's streaming market maturing, iQIYI's ability to balance nostalgia-driven content with forward-looking strategies like micro-dramas and AI-powered production positions it as a compelling investment opportunity.

Long-Tail IP: A Proven Engine for Growth

iQIYI's strategic revival of classic IPs during the 2025 National Day Holiday demonstrated the enduring power of its content library. By offering limited free access to iconic series like Ultimate Note and Journey to the West, the platform achieved a 21% sequential increase in non-member watch time, according to PR Newswire. This approach not only attracted new users but also deepened engagement among existing ones, with offline immersive experiences further amplifying the IP's reach. For instance, Strange Tales of Tang Dynasty II To the West saw a 383.6% sequential surge in offline theater visitors, illustrating how cross-platform IP development can create layered revenue streams, as noted in the PR Newswire coverage.

The financial viability of long-tail IPs is underscored by iQIYI's Q2 2025 results, which reported RMB 6.63 billion in total revenue, driven by membership services (RMB 4.09 billion) and online advertising (RMB 1.27 billion). Notably, the company maintained non-GAAP operating profitability for 14 consecutive quarters, a testament to its disciplined cost management and IP-driven monetization, according to a Longport report.

Micro-Dramas: Catering to Modern Viewing Habits

The rise of micro-dramas-short-form, serialized content-has become a cornerstone of iQIYI's strategy. During the 2025 National Day Holiday, the platform launched 23 new micro-drama titles, many of which achieved viral popularity. For example, Cheng He Ti Tong, an IP-adapted micro-drama, reached a content popularity peak of over 5,500, setting a new benchmark, according to the Longport report. These bite-sized stories cater to fast-paced lifestyles, with titles like Hard Noble Lady generating RMB 7 million in shared revenue during the 2024 holiday period, as the same Longport report details.

This format's success is not isolated. iQIYI's mini-drama segment expanded to over 10,000 titles by late 2024, with some programs generating monthly revenue exceeding RMB 1 million, per the Longport report. The platform's Micro-Drama Theater and Short-Drama Theater initiatives, prominently featured on the homepage, reflect a deliberate effort to curate content for on-the-go consumption, aligning with broader industry trends toward fragmented attention spans.

AI and Global Expansion: Future-Proofing the Business

iQIYI's 2025 iJOY Conference highlighted its commitment to AI-driven content creation, a move that could redefine production efficiency and viewer personalization. AI tools have already boosted digital asset generation by over 10 times and improved video ad click-through rates by 20%, according to BeyondSPX. These advancements are critical for maintaining profitability as content costs rise.

Globally, iQIYI is expanding its footprint, with membership revenue in markets like Hong Kong, the UK, Thailand, and Australia growing over 30% year-on-year, as reported by the Longport report. This international diversification mitigates risks tied to China's domestic market and opens new avenues for IP monetization.

Investment Implications

iQIYI's 2025 National Day Holiday performance underscores its ability to adapt to evolving consumer preferences while maximizing the value of its IP library. The platform's dual focus on long-tail content and short-form innovation creates a resilient revenue model, supported by AI-driven efficiency and global expansion. For investors, the key risks include intensifying competition from platforms like Tencent Video and Youku, as well as regulatory pressures in China's entertainment sector. However, iQIYI's track record of profitability and its agile content strategies suggest it is well-positioned to navigate these challenges.

As the streaming market shifts toward diversified, IP-centric ecosystems, iQIYI's 2025 holiday success offers a blueprint for sustainable growth. With its blend of nostalgia, technological innovation, and global ambition, the company is not just surviving-it's thriving in an increasingly fragmented market.