Chinese streaming giant iQiyi may reach profitability in five years time, according to its CEO.
In comments made to Reuters, Baidu founder and CEO Gong Yu said that the streamer – which effectively serves as the Chinese equivalent of Netflix – will turn to ‘intelligent production’ to cut costs and reach profitability.
The process of intelligent production will see the streamer play host to generated, self-produced video content, while an increasing dependence on AI and 5G tech will also cut video production costs.
Despite its massive stature in the country, its 2020 net losses were at US$1.09 billion for 2020. Content cost makes up 94% of the streamer’s operating cost, and that sat at over US$3 billion last year.
The company will also look to expand its international business, though Gong said that it won’t aggressively launch in other markets until it has a substantive enough content base.