iQIYI Inc. Expands Beyond Digital Content with Theme Parks and Consumer Products

iQIYI Inc (IQ) is expanding its business beyond digital content by transforming popular original shows and characters into offline attractions and consumer IP products. The company generated over RMB100 million (US$14.1 million) in GMV from self-operated collectible trading cards in the first half of 2025. iQIYI is developing "iQIYI Land" theme parks and is well-positioned to capture demand in the fast-growing IP derivatives market, projected to reach RMB202.5 billion (US$28.5 billion) this year. The expansion may require significant investment and resources, and managing the entire product lifecycle in-house may pose potential risks.

Title: iQIYI Expands Beyond Digital Content, Unlocks New Revenue Streams

iQIYI Inc. (IQ) has been making significant strides in diversifying its business model by transforming its hit original shows and characters into offline attractions and consumer IP products. The company reported substantial growth in its Experience Business during the Q2 2025 earnings, demonstrating the success of its strategy to expand beyond the screen.

One of the key drivers of this growth is iQIYI's ability to tap into a wide array of authorized IPs from both in-house content studios and partners. The company leverages show elements such as characters and storylines to create a variety of products, including collectible trading cards, extensive merchandise collaborations, immersive theaters, and innovative theme parks like "iQIYI Land". Technologies such as proprietary DRM and AI are used to protect content and enhance fan engagement.

The expansion into offline experiences is not only driven by the company's creative capabilities but also by the burgeoning IP derivatives market in China. This market is projected to reach RMB202.5 billion (US$28.5 billion) this year, up from RMB99.4 billion (US$14.0 billion) in 2020 [1]. The growth is fueled by strong consumer demand for products and experiences that immerse them in the world of their favorite on-screen characters and stories.

iQIYI has been particularly successful in generating revenue through self-operated collectible trading cards. In the first half of 2025, these cards generated over RMB100 million (US$14.1 million) in gross merchandise value (GMV), featuring popular shows like "Love in Pavilion" and "Feud" [2]. The company is now expanding into more product categories and developing its own sales channels, indicating a broader strategy to capture a larger share of the market.

In addition to trading cards, iQIYI has also seen success with merchandise for hit shows such as "Mysterious Lotus Casebook". This merchandise, ranging from lifestyle products like phone cases to model toys, has driven a total GMV exceeding RMB200 million (US$28.1 million) [3]. Going forward, the company plans to expand its product offerings to include film, Japanese animation, and kids' content.

Offline attractions are another key component of iQIYI's strategy. The company currently operates over 50 immersive theaters in about 30 cities across China. Furthermore, it is developing "iQIYI Land" theme parks, with locations in Yangzhou and Kaifeng under construction and more sites to be announced later this year [4]. These parks will feature IP-based attractions, interactive experiences, and merchandise, creating a physical destination for fans.

By bridging the gap between on-screen content and real-world products and experiences, iQIYI aims to create new revenue streams and build deeper, engaging long-term connections with its audience. However, the expansion may require significant investment and resources, and managing the entire product lifecycle in-house may pose potential risks.

References

[1] https://finance.yahoo.com/news/iqiyi-unlocks-growth-beyond-screen-064900860.html
[2] https://sg.finance.yahoo.com/news/iqiyi-unlocks-growth-beyond-screen-064900932.html
[3] https://www.prnewswire.com/news-releases/iqiyi-unlocks-new-growth-beyond-the-screen-turning-hit-shows-into-theme-parks-and-consumer-ip-products-302541827.html
[4] https://www.morningstar.com/news/pr-newswire/20250829cn61848/iqiyi-unlocks-new-growth-beyond-the-screen-turning-hit-shows-into-theme-parks-and-consumer-ip-products