iQIYI Q3 revenue drops 10%, focus shifts to diverse content offerings

The Nasdaq-listed company eyes “high-quality growth” in 2023, aiming for simultaneous growth in operating profit and revenue. Credit: 123RF

iQIYI reported a 10% year-over-year revenue decline in the third quarter of 2024, citing a lighter content slate and challenges in brand advertising. Despite the decline, the company experienced growth in performance-based advertising and a 52% increase in content distribution revenue, driven by barter transactions. CEO Yu Gong highlighted the company’s strategic pivot to address evolving viewer demands. Recent initiatives include the introduction of mini and short dramas alongside traditional long-form content, as well as a family membership option designed to improve user retention and satisfaction. iQIYI also maintained disciplined cost management, reducing content costs by 5% and cutting marketing expenses. CFO Jun Wang said these efforts reflect the company’s focus on long-term value creation despite a challenging advertising environment. [iQIYI]