iQIYI Unlocks New Growth Beyond the Screen, Turning Hit Shows into Theme Parks and Consumer IP Products

Rhea-AI Summary

iQIYI (NASDAQ:IQ), China's leading online entertainment platform, is successfully expanding beyond streaming content into IP-based experiences and products. The company reported significant growth in its Experience Business during Q2 2025, leveraging its original shows to create trading cards, merchandise, immersive theaters, and theme parks.

The company's trading cards generated over RMB100 million ($14.1M) in GMV in H1 2025, while merchandise collaborations achieved RMB200 million ($28.1M) in GMV. iQIYI operates 50+ immersive theaters across 30 Chinese cities and is developing "iQIYI Land" theme parks in Yangzhou and Kaifeng. This expansion taps into China's IP derivatives market, projected to reach RMB202.5 billion ($28.5B) in 2025, up from RMB99.4 billion in 2020.

Positive

• Successfully diversified revenue streams beyond streaming with IP-based products and experiences
• Trading cards business generated RMB100 million ($14.1M) in GMV in H1 2025
• Merchandise collaborations achieved RMB200 million ($28.1M) in GMV
• Expanding physical presence with 50+ immersive theaters and new theme parks under construction
• Operating in a rapidly growing IP derivatives market projected to reach RMB202.5 billion ($28.5B) in 2025

Negative

• None.

Insights

Media & Entertainment Business Analyst

iQIYI's expansion beyond streaming into IP-based merchandise and theme parks creates significant new revenue streams with proven early success.

iQIYI is executing a classic vertical integration strategy by monetizing its content IP across multiple channels. The company's Experience Business is transforming from a pure streaming platform into a comprehensive entertainment ecosystem with diversified revenue streams.

Their move into physical products shows impressive early traction. The self-operated collectible trading cards generated RMB100 million ($14.1 million) in GMV during H1 2025, while broader merchandise collaborations delivered RMB200 million ($28.1 million) in GMV. These figures validate the strategy's commercial viability.

The expansion into offline experiences—50+ immersive theaters across 30 cities and the development of "iQIYI Land" theme parks—represents a significant competitive moat. By creating physical touchpoints with consumers, iQIYI is building deeper engagement while capturing a larger share of entertainment spending.

This strategy taps into China's rapidly growing IP derivatives market, projected to reach RMB202.5 billion ($28.5 billion) this year—more than doubling from RMB99.4 billion in 2020. The company's vertical integration approach, managing the entire product lifecycle in-house, should allow for higher margin capture compared to traditional licensing models.

By leveraging existing IP across multiple revenue channels, iQIYI is maximizing return on its content investments while creating recurring revenue opportunities beyond the subscription model. This diversification reduces reliance on streaming alone and positions them to capture value throughout the entertainment consumption chain.

BEIJING, Aug. 29, 2025 /PRNewswire/ -- 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.

Contact:
iQIYI Press, press@qiyi.com 

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SOURCE iQIYI Inc.

FAQ

What is iQIYI's (IQ) new business strategy beyond streaming?

iQIYI is expanding into IP-based experiences and products, including trading cards, merchandise, immersive theaters, and theme parks, leveraging content from its hit shows.

How much revenue did iQIYI's trading cards generate in H1 2025?

iQIYI's trading cards business generated RMB100 million ($14.1M) in GMV during the first half of 2025.

How many immersive theaters does iQIYI operate in China?

iQIYI operates over 50 immersive theaters across approximately 30 cities in China.

Where is iQIYI building its theme parks?

iQIYI is currently constructing 'iQIYI Land' theme parks in Yangzhou and Kaifeng, with more locations to be announced later in 2025.

What is the projected size of China's IP derivatives market in 2025?

China's IP derivatives market is projected to reach RMB202.5 billion ($28.5B) in 2025, up from RMB99.4 billion in 2020.