iQIYI's Expansion in Southeast Asia and Global OTT Growth Potential

In the rapidly evolving global over-the-top (OTT) streaming landscape, cross-border content collaboration and regional market penetration have emerged as critical levers for sustainable growth. iQIYI, China's leading online entertainment service, has positioned itself as a strategic player in this arena, leveraging partnerships with South Korean and Thai studios to drive international expansion. With Southeast Asia's premium video-on-demand (VOD) market surging-adding 1.5 million net new subscribers in Q2 2025 alone, according to a Deadline report-iQIYI's localized content strategy and technological innovation are reshaping its growth trajectory.

Cross-Border Collaborations: A Blueprint for Scalable Growth

iQIYI's partnership with South Korea's SBS Studio Prism exemplifies its commitment to cross-border content creation. The co-production of Running Man Thailand, a localized version of the globally iconic variety show, underscores this approach. Unveiled at the iJOY 2026 Thailand event in Bangkok, the show features seven Thai celebrities and is set to premiere in 2026, as Yahoo Finance reported. This collaboration not only taps into the nostalgia of the original Running Man franchise but also integrates local cultural nuances to resonate with Thai audiences. By combining SBS's production expertise with iQIYI's global distribution network, the partnership creates a scalable model for regional content localization.

Beyond Running Man Thailand, iQIYI has also co-developed Speed and Love, a drama under its Heartbeat Theater banner, featuring Thai talent and international stars, as PR Newswire reported. These projects highlight iQIYI's ability to balance global IP with local relevance-a formula that has proven effective in markets like Indonesia and Vietnam.

Financial Performance in Thailand: Subscriber Growth Outpaces Revenue Challenges

While iQIYI's global revenue faced headwinds in Q2 2025 (total revenue fell 11% year-over-year to RMB 6.63 billion, as IQIYI's earnings report noted), its Southeast Asian operations, particularly in Thailand, demonstrated resilience. The region contributed to 60% of the total net new subscriber growth in Q2 2025, according to the Deadline report, with iQIYI securing a notable market share in Thailand's premium VOD engagement. Though Netflix led with a 43% share, iQIYI's position as a close second reflects its growing influence, according to the Deadline report.

The platform's success is driven by a dual strategy: introducing Thai content to international audiences and adapting global IP for local markets. For instance, The Lady and Her Lovers, a Thai drama on iQIYI, achieved the highest daily revenue among Thai dramas in 2024 and ranked first on Google Thailand, according to an Investing.com earnings call. Such performance underscores the platform's ability to monetize regional content effectively.

Technological Innovation: Redefining Content Production

iQIYI's investment in virtual production technology further strengthens its competitive edge. In 2025, the company increased virtual production projects by 125% year-over-year, according to Yahoo Finance, reducing daily studio rates to RMB 35,000-a 40% drop from previous rates. This cost efficiency, coupled with patented innovations like the IQStage platform, enables iQIYI to produce high-quality content at scale. The platform's integration of AI and custom hardware has already supported over a dozen projects since 2021, setting industry benchmarks, as Yahoo Finance reported.

Strategic Partnerships and Market Penetration: A Path to High-Margin Growth

iQIYI's expansion in Thailand is not limited to content. The company has forged partnerships with telecom providers to offer bundled packages, enhancing accessibility for price-sensitive consumers, as Investing.com reported. These partnerships, combined with ad-supported basic membership plans, have driven a 40% increase in cash purchases in Q3 2024, as China Daily reported. Such strategies align with Southeast Asia's growing middle class and its appetite for affordable, high-quality entertainment.

Conclusion: A Compelling Investment Thesis

iQIYI's Southeast Asia strategy-rooted in cross-border collaboration, localized content, and technological innovation-positions it as a high-margin growth story in the global OTT sector. While macroeconomic headwinds may temper near-term revenue, the platform's subscriber growth in Thailand and Indonesia, coupled with its ability to monetize regional content, suggests a strong long-term outlook. As iQIYI continues to refine its international partnerships and leverage AI-driven production, it is well-positioned to capture a larger share of Southeast Asia's $10 billion streaming market, as Nikkei Asia reported.