iQIYI leads agile, IP-and tech-powered offline experience with plan for second theme park in China

Rhea-AI Summary

iQIYI has announced the groundbreaking of its second comprehensive theme park, iQIYI LAND, in Kaifeng, Henan Province, following its first park planned in Yangzhou. The park will feature seven core entertainment sectors including immersive theater, holographic spaces, and MR experiences.

Unlike traditional theme parks, iQIYI's model leverages proprietary game engines, VR, and AI technology for frequent content updates and immersive engagement, reducing capital-intensive infrastructure needs. The company's immersive theater experiences are already present in over 20 cities across 40 locations.

The theme park sector in China reached RMB 60 billion in 2023 and is projected to exceed RMB 110 billion by 2028. The Kaifeng location, situated near Longting Lake Park, benefits from strong transportation connectivity to major population centers like Zhengzhou and Luoyang.

Positive

• Expansion into physical entertainment with second theme park announcement shows growth strategy
• Technology-driven model reduces capital expenditure and operational costs compared to traditional theme parks
• Existing presence in 20 cities with 40 locations demonstrates proven market acceptance
• Strategic location in Kaifeng provides access to large population centers (20M+ combined)
• Operating in growing market projected to reach RMB 110 billion by 2028

Negative

• Significant competition in China's theme park sector may impact profitability
• Success depends on continuous technology investment and content updates
• Risk of IP depreciation could affect long-term park value

Insights

Media & Entertainment Analyst

iQIYI's theme park expansion represents a strategic pivot to monetize IP through asset-light physical experiences, diversifying revenue but adding execution risk.

iQIYI's announcement of a second theme park signals an accelerated offline expansion strategy that differentiates itself from capital-intensive traditional parks. Rather than competing with Disney's infrastructure-heavy model, iQIYI is pioneering a technology-driven approach that potentially offers faster ROI cycles and greater content flexibility.

The company's strategy addresses three critical industry pain points: high capital requirements, slow returns, and IP depreciation. By leveraging proprietary game engines, VR and AI technologies, iQIYI can refresh attractions more frequently without the massive infrastructure costs that plague traditional operators.

This expansion taps into China's growing theme park market, projected to reach RMB 110 billion ($15 billion) by 2028, a 83% increase from 2023. The location selection demonstrates strategic acumen—Kaifeng offers cultural richness while providing access to 20 million potential visitors from nearby metropolitan areas through high-speed rail connections.

What's particularly notable is iQIYI's validation of this model through their existing immersive theater operations across 40 locations in 20 cities. This suggests they've refined their approach before scaling to comprehensive theme parks, reducing execution risk.

For iQIYI, this represents a critical evolution from a pure streaming platform to an integrated entertainment ecosystem where digital content drives physical experiences and vice versa. While carrying execution risks, this IP monetization strategy creates potential for higher-margin revenue streams beyond subscription and advertising, diversifying the company's business model in an increasingly competitive streaming landscape.

BEIJING, April 18, 2025 /PRNewswire/ -- On Apr. 18, iQIYI, China's leading online entertainment platform, announced the groundbreaking of its second comprehensive theme park, iQIYI LAND, in Kaifeng, Henan Province, Central China. This milestone follows last month's unveiling of iQIYI's plans for its first comprehensive theme park in Yangzhou, Jiangsu Province in East China, marking another step in the company's strategy to extend its premium IP into the offline realm. It also showcases an innovative model that combines operational agility with enhanced interactivity powered by cutting-edge technologies.

"Through online-offline integration, viewers engage more deeply with the content, transforming from 'audience' to 'experiencer' and even 'co-creator,'" said Yu GONG, founder and CEO of iQIYI, at the launch ceremony. He added, "iQIYI is developing a comprehensive digital entertainment solution that encompasses everything from online content to offline experiences and from virtual interactions to real-life engagement. These technological advancements and innovations will lay a strong foundation for the Kaifeng project."

The upcoming iQIYI LAND in Kaifeng will feature seven core entertainment sectors introduced in the Yangzhou project, including immersive theater, holographic light spaces, interactive performance theaters, film set interaction areas, NPC (non-player character) experiences, MR (mixed reality) experiences, and other offline activities. The new park will also introduce IP-themed exhibition areas designed to deepen audience engagement and enrich the visitor experience.

Unlike traditional theme parks that require capital-intensive infrastructure, heavy upfront investment, and extended return cycles, iQIYI is pioneering a more agile and technology-driven model. By leveraging proprietary game engines, virtual reality (VR), and artificial intelligence (AI), the company delivers frequent content updates and more immersive engagement. This approach also addresses common industry challenges such as IP depreciation, high costs associated with live performers and limited interactive content capabilities.

"Since 2017, we've been exploring immersive offline storytelling experiences while building a strong portfolio of sustainable, original Chinese IPs," said Hang ZHANG, Senior Vice President of iQIYI. "We're committed to driving content innovation and improving operational efficiency to create long-term value for both users and the industry." He added that bringing popular IPs into the physical world helps deepen fans' emotional connections with the content.

Currently, the immersive theater experiences have been rolled out across more than 20 cities and 40 locations nationwide and will become a core attraction at iQIYI LAND in the future.

This strategic direction aligns with the growing demand in China's theme park sector, which, according to data from China Insights Consultancy, reached RMB 60 billion (USD 8.2 billion) in 2023 and is projected to exceed RMB 110 billion (USD 15 billion) by 2028.

As with the earlier Yangzhou project, iQIYI continues to prioritize culturally rich cities with strong accessibility and market potential. Located in Central China's Henan Province, Kaifeng is one of China's eight ancient capitals and offers excellent transportation connectivity, including high-speed rail lines that connect to Zhengzhou, with a population of 13 million, in just 30 minutes and to Luoyang, with a population of 7 million, in approximately one hour.

The 960 Cultural and Creative Park, the future site of the theme park, is located near Longting Lake Park, a well-known cultural and leisure destination.

CONTACT: iQIYI Press, press@qiyi.com

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SOURCE iQIYI

FAQ

What are the seven core entertainment sectors planned for iQIYI LAND theme parks?

The parks will feature immersive theater, holographic light spaces, interactive performance theaters, film set interaction areas, NPC experiences, MR experiences, and other offline activities.

How does iQIYI's theme park model differ from traditional theme parks?

iQIYI uses a technology-driven model with proprietary game engines, VR, and AI for frequent content updates, requiring less capital-intensive infrastructure and upfront investment compared to traditional parks.

What is the projected market size for China's theme park sector by 2028?

China's theme park sector is projected to exceed RMB 110 billion (USD 15 billion) by 2028, up from RMB 60 billion in 2023.

Where will iQIYI's second theme park be located and why was this location chosen?

The second park will be in Kaifeng, Henan Province, chosen for its cultural significance as one of China's ancient capitals and excellent transportation connectivity to major population centers.