iQIYI's Q2 2025: Unraveling Contradictions in Content Strategy, Membership Growth, and Overseas Expansion

Content strategy and focus, membership business strategy, content strategy and focus, mini drama and short drama strategy, and overseas business strategy and growth are the key contradictions discussed in iQIYI's latest 2025Q2 earnings call.



Content Performance and Impact:
- iQIYI achieved record high iQIYI popularity scores for several dramas, with titles such as "The Shadows Edge" surpassing RMB 300 million in box office revenue.
- The success was driven by strong content offerings and strategic partnerships, such as the revenue sharing model for movie distribution.

Membership and Advertising Revenue:
- Membership services revenue reached RMB 4.1 billion, down 9% year-on-year, and online advertising revenue was RMB 1.3 billion, down 13% year-on-year.
- The decline was primarily due to macroeconomic pressures, leading some advertisers to adjust their strategies.

Financial Management and Debt Reduction:
- iQIYI repurchased a total principal amount of USD 85 million of the 2028 notes, reducing the outstanding balance to USD 208 million.
- This debt reduction strategy was aimed at optimizing the company's capital structure and reducing net interest expenses.

Overseas Business Expansion:
- Membership revenue outside Mainland China grew by around 35% annually, with overseas markets like Brazil, Mexico, and Indonesia showing over 80% growth.
- This expansion was driven by the popular content lineup and successful localization strategies.