iQiyi’s Subscription Revenue Surpasses Advertising Revenue for the First Time
On October 31, Chinese online video giant iQiyi (NASDAQ: IQ) released the company’s performance report for the third quarter of 2018. According to the report, iQiyi’s number of subscribers increased by 89% year-over-year to 80.7 million. Subscription revenue is 2.9 billion yuan ($415 million). This marks the first time that iQiyi’s subscription revenue surpasses its advertising revenue, which is 2.4 billion yuan during the reporting period. iQiyi CEO Gong Yu attributes the growth of subscription revenue to the company’s high quality original content. The report also shows that iQiyi’s total revenue in Q3 is 6.9 billion yuan, and the projection for its Q4 revenue is 6.48-6.75 billion yuan. Read more on yiyuguancha
Local Distributors Look to Conquer Third to Fifth Tiered Cities
As the growth of the Chinese film market slows down, it also brings challenges to local film distributors. Some distributors closed shops this year. Some were merged with or acquired by other companies. And the rest look for new opportunities and areas for growth. Some industry experts believe that the future growth lies in third, fourth and fifth tiered cities. Thanks to ticket subsidies and newly built cinemas, the number of moviegoers in lower tiered cities has been growing. Currently, there are about 4700 movie theaters in third to fifth tiered cities in China. Previous box office records have shown that local films are more likely to resonate with audiences in small cities, as evidenced by the box office success of Wolf Warriors 2, Operation Red Sea, and The Ex-file 3: The Return of the Exes. As the Chinese government spends great efforts in supporting local films, the box office potential of smaller cities in China are expected to be further actualized. Read more on yiqipaidianying
‘The House with a Clock in its Walls’ Has Lukewarm Opening in China
American family fantasy film ‘The House with a Clock in its Walls’ opened in China on Thursday November 1 and made less than 3 million yuan on its opening day. The film is directed by Eli Roth and produced by Steven Spielberg’s Amblin Entertainment. Starring Jack Black, Cate Blanchett and Owen Vaccaro, the film follows a young boy who is sent to live with his uncle in a creaky old house. As the overall China box office has been weak lately, the lukewarm opening of The House with a Clock in its Walls didn’t come as a shock. Read more on Mtime
