China’s Netflix, iQiyi, is placing one of the most significant wagers in the history of streaming services. The corporation aims for AI to produce the majority of its movies and series in the near future, and it is already overhauling its 16-year-old operations to achieve this goal.
During its yearly content event in Beijing, founder and CEO Gong Yu revealed that iQiyi is transforming its widely used streaming service into a social media hub centered on AI-created material.
Concurrently, the firm introduced Nadou Pro, an AI application that reportedly manages nearly every stage of video production, from initial scripts and storyboards to the final edited footage.
Can Artificial Intelligence Rescue a Fading Streaming Leader?
As reported by Bloomberg, IQiyi has experienced prolonged financial losses due to the rapid growth of short-form video apps like Douyin, which have drawn away its viewership. Revenue is projected to fall by 13% in the first quarter alone. Gong views AI as the solution, and his approach is clear. “This is a once-in-a-decade opportunity,” he stated to the crowd. “We must ride the wave.”
NadouThe corporation hopes to launch a commercially profitable AI-made movie as soon as the upcoming summer. To attract independent creators, it is providing an extra 20% share of ad and subscription earnings to those producing AI material on the site. Additionally, a new dedicated app will allow users to engage with characters from its programs.
What Happens to Traditional Productions?
Gong assured that funding for professionally crafted series will continue, though he acknowledged that such content will occupy a smaller portion of the platform over time. AI-generated material is undeniably the primary focus.
While I am not opposed to the growth of AI content online, concerns arise when it begins to displace human creators. AI has turned into a lucrative trend that everyone wants to capitalize on, and IQiyi is the newest to follow suit.
UnsplashEach time I observe this development, I am convinced that AI represents another potential bubble. For instance, a footwear brand recently shifted from manufacturing shoes to building AI infrastructure, causing its share price to jump nearly 600%.
It will be fascinating to determine which enterprises endure this AI wave once the bubble deflates and stability returns.