Mar 19, 2019 (China Knowledge) - Chinese video and content streaming site IQiyi is looking towards building a new short-video app by 2020 to challenge Bytedance’s Douyin and Tencent-backed Kuaishou in the short-video arena.
IQiyi which is backed by Chinese search giant Baidu Inc now aims to build a social media-oriented video sharing platform that provides entertainment for its users after multiple attempts to penetrate the industry that have produced lackluster results.
Short-video apps have taken the Chinese internet by storm in recent times with Bytedance’s Douyin (Tik Tok in overseas markets) even having found success in overseas markets such as the US. The industry has now drawn investors from across the world, raising hundreds of million in investments.
The explosion in popularity of these apps pose a challenge for IQiyi moving forward as these apps compete for user time with the company’s core Netflix-like video and content streaming platform.
While IQiyi has attempted to make forays in the industry, the company’s efforts have come up short being unable to generate the traffic that it desires. The company now hopes to create an app that will be able to hit 10 million daily active users by 2020 by focusing only on entertainment-related content unlike its peers who also produce short videos featuring news and information.
To remain competitive, IQiyi will continue to invest in its original content creation as well as artificial intelligence to provide its users with better recommendations in order to increase user retention.
While IQiyi remains as China’s largest video streaming platform in terms of time spent on the platform with a total of 645 million hours in January, the company also faces challenges in the content business with increasing regulation and censorship controls in the country.
Founder and Chief Executive Gong Yu cited the example of Yanxi Palace which was cancelled from being broadcasted in China due to its glorification of extravagance and the feudal system during imperial times.
Despite this, Gong believes that there is still room for creativity in the industry and IQiyi will continue to focus on producing engaging content while keeping in line with censorship controls in the country.
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