iQIYI raises US$1.53BN for VOD investment | Major Businesses | Business | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
China’s video streaming platform iQIYI has raised US$1.53 billion via convertible bonds to invest in original content and compete with rivals Tencent and Alibaba.

iQIYI logoSome $300 million worth of bonds were issued by iQIYI to its parent company Baidu, with the remainder going to Hillhouse Capital, IDG Capital and Sequoia Capital.

“iQiyi has been a great asset and an important part of the Baidu ecosystem,” Baidu CEO Robin Li said in a statement.

According to App Annie’s 2016 figures, iQIYI’s app was ranked No 7 for worldwide combined iOS and Google Play revenue. Netflix was positioned at No 3, HBO Now was No 5 and Hulu was No 10.

A UBS report, Online Video vs. Cable TV: Close to the Tipping Point, released earlier this month claims total revenue for China’s top three online video platforms (iQIYI Tencent Video and Alibaba’s Youku Tudou) reached a comparable level as tier-1 cable TV networks in 2016, and will outstrip TV in 2017.

“Of the three, we believe iQIYI currently leads in subscriber base, content portfolio (particularly self-made) and revenue size; Tencent Video has a larger user base and Tencent’s rich content/IP reserve in online literature and games; while we believe Youku Tudou has strong eCommerce monetisation potential,” said UBS.

Baidu, Alibaba and Tencent together commanded more than 60% of China's online video ad market as of third quarter 2016, according to research firm Analysys.