BEIJING - iQIYI, China's leading online entertainment platform, highlighted recent growth in its Experience Business during its Q2 2025 earnings last week. This growth illustrates the success of iQIYI's strategy to expand beyond the screen, transforming its hit original shows and characters into offline attractions and consumer IP products.

The company taps into a wide array of authorized IPs from dozens of in-house content studios, and from partners, using show elements such as characters and storylines to create collectible trading cards, extensive merchandise collaborations, immersive theaters, and innovative theme parks such as "iQIYI Land". Technologies such as proprietary DRM and AI are used to protect content and create more engaging experience for fans.

iQIYI's strategy leverages China's fast-growing IP derivatives market, which is projected to reach RMB202.5 billion (US$28.5 billion) this year, up from RMB99.4 billion (US$14.0 billion) in 2020, according to publicly available industry data. This growth is driven by strong consumer demand for products and experiences that immerse them in the world of their favorite on-screen character and stories. As a leading content creator and IP holder, iQIYI is well positioned to meet and capture this demand.

Expanding Fan Favorites into Consumer Products

iQIYI now manages the entire product lifecycle in-house, from planning to sales. Its self-operated collectible trading cards have been a major hit, generating over RMB100 million (US$14.1 million) in gross merchandise value (GMV) in the first half of 2025, featuring popular shows like "Love in Pavilion" and "Feud". The company is now expanding into more product categories and developing its own sales channels.

Beyond cards, merchandise for hit shows like "Mysterious Lotus Casebook"—including lifestyle products from phone cases to model toys—has also performed well. Until now, collaborations have driven a total GMV exceeding RMB200 million (US$28.1 million), comprising both direct merchandise sales and co-branded products. Going forward, iQIYI will expand products tied to film, Japanese animation, and kids' content.

Bringing Stories to Life with Offline Experiences

Offline attractions are another key component of iQIYI's strategy. The company currently runs over 50 immersive theaters in about 30 cities across China. It is also developing "iQIYI Land" theme parks, with locations in Yangzhou and Kaifeng under construction and more sites to be announced later this year. 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.