iQIYI (NASDAQ:IQ) held its first-quarter earnings conference call on Monday. Below is the complete transcript from the call.
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Summary
iQIYI Inc reported Q1 2026 revenues of 6.2 billion RMB, with a sequential decline of 8%. Membership services revenue grew by 2% sequentially, while online advertising and content distribution revenues decreased by 8% and 54%, respectively.
The company is focusing on reinforcing its core business through premium content, expanding into short film dramas, and leveraging AI for content creation. It plans to launch over 100 short-form dramas in 2026.
iQIYI Inc’s overseas business is a key growth area, with membership revenue in Southeast Asia increasing by over 40% annually, driven by a focus on young female demographics and local content production.
The company is investing in AI-driven content creation with its proprietary platform, Nattopro, which has over 10,000 active creators and plans for an international version.
Management highlighted strong anti-piracy measures and a supportive regulatory environment, which are expected to enhance content protection and drive growth in high-quality content creation.
Full Transcript
OPERATOR
Thank you for standing by and welcome to the iQIYI Inc First Quarter 2026 Earnings Conference Call. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Cheng Yu, IR Director of the Company. Please go ahead.
Cheng Yu (IR Director)
Thank you operator. Hello everyone and thank you for joining iQIYI Inc’s first quarter 2026 earnings conference call. The Company’s results were released earlier today and are available on the Company’s investor relations [email protected] on the call today are Mr. Yukong, our founder, director and CEO, Ms. Yim sun, our interim CFO, Mr. Xiao Kui Wang, our chief content officer, Mr. Yu Jiaoduan, senior Vice President of our membership business and Mr. Xiangpai Yang, senior Vice President of International and Uber online game business. Mr. Gong will give a brief overview of the Company’s business operations and highlights followed by who will go through the financials. After the prepared remarks, the management team will participate in the Q and A session. Before we proceed, please note that the discussion today will contain forward looking statements made under the safe harbor provisions of the U.S. private Securities Litigation Reform act of 1995. Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the sec. iQIYI does not undertake any obligation to update any forward looking statement except as required under applicable law. I will now pass on to Mr. Gong. Please go ahead.
Gong
Hello everyone. Thank you for joining us today. The coherency of AI and domestic regulatory landscape is fundamentally reshaping entertainment and creating incredible opportunities for it. Let me show ityi’s value proposition in this new area from three perspectives. Reinforcing our core today Igniting new growth engines and building for the long term let’s start with the first prospective reinforcing our core fundamental foundational threats. Premium content remains the cornerstone of our Strategy and in Q1 we reaffirmed as comparing appeal for audiences a diverse lineup of hit dramas, including the punishment tool, Born to Be Alive, Sheng Shu, Pursuit of J to Yu and How Dare you. Zhonghaitong secured a dominant position in the core drama category. Enlightened Moving forward, our commitment to content quality is stronger than ever. Designed to deliver expert experience that profoundly connect with viewers, this focus is revitalizing our core operations evidenced by the sequential growth in membership revenue. We are also highly encouraged by the supportive domestic regulatory landscape which is accelerating the content approval progress and driving stronger capital efficiency. Importantly, these regulatory policies are unlocking innovation across new formats. This includes short film dramas, typically 15 to 25 minutes per episode with flexible episode counts, and Internet feature films from Internet feature films, which are limited to three chapters of 60 minutes each. These formats are not only shortened production cycles at and lower capital barriers, but also attract a broader pool of creative talent enabling more innovative authority than traditional long form content. Furthermore, there are. Perfectly suited for AI integration, automatically enriching our portfolio and maximizing our ROI. Looking ahead, we plan to launch over 100 short form dramas in 2026 while steadily building our Internet feature film slate. By continually delivering premium long form content well, strategically expanding into new formats, we are reinforcing our foundational strengths. Importantly, this expansion is efficient, allowing us to capture new opportunities without putting additional pressure on our overall content costs. Second, we are igniting new growth engines among all emerging business segments. Our overseas business has established it as a proven second growth driver in Q1 overseas membership revenue swept by over 40% annually. This success stems from a highly differentiated market positioning compared to global peers. We focus on premier Asian content tailored primarily for young female demographics. Within our Asian content portfolio, free dramas whose global influence continue to rise serve as the key catalyst for our international expansion complemented by a growing slate of local content. Geographically, we are anchoring our presence in Southeast Asia while also expanding into high growth markets in the Middle east and Latin America with Brazil as a key focus, while also deeply integrating AI across our global operations to drive efficiency. Parallel to our market expansion, we are maximizing IP value through our experience business, expanding our content value from online to offline, and extending the IP life cycle for IP based consumer products. We are driving deeper user engagement, some merchandising, while empowering popular IPs to generate both broadcasting window and long tail monetization. Finally, our foray into offline experience is yielding encouraging results. Our first iQIYI Land in Yangzhou has gathered solid initial feedback allowing us to rapidly accumulate operational experience to apply to other locations. Thirdly, we are laying a robust foundation for long term growth powered by AI and all decentralized platform. AI is breaking down the historical barrier that once made quality content costly, time consuming, igniting Explore growth in both craters and content value. Anticipating that this accelerating shift will soon outgrow the traditional centralized media platform model, we have strategically pivoted to build upgraded and vibrant decentralized social media ecosystem. This will unlock substantial value. A decentralized ecosystem greatly expands content supply, allowing us to meet backwards demand at a whole new scale. Creatures will have greater opportunities to break through another fee, retaining full ownership of their IP and converting it into fair attractive returns while also cultivating private traffic, building lawyer and gathering valuable data from direct user interactions. Meanwhile, for ITO originals we are sharpening our focus on premium content while the decentralized planning pool drives scale our original server as our signature offerings. Additionally, we are building a common prehensive support system so creators can focus purely on creativity. One key pillar is NATO Pro. It is a proprietary platform for pseudo grade content production. Nadoprom is powered by both public and self deployed lab models, but it goes beyond generic models. It’s built upon years of technology infrastructure and deep content expertise. We transform years of industry know how into AI agent and combine them with our core IP and digital assets to deliver accessible platform capabilities. NATO Pro offers one stop services from content creation to operations and commercial collaborations. Beyond natopro, we offer professional training and workspaces. We also facilitate financing solutions, connecting talent with capital through our own funds and external AS investor networks. Now let’s explore what defines iQIYI’s long term investment value and how we are uniquely positioned to lead in the AI area. Our confidence rests on two core pillars. First, how to replicate competitive mode. We possess a unique blend of deep content expertise and cutting edge technology. We have proven DNA of innovation from pioneering general specific cell tech brands to now leading the AIGC transformation in the industry. Crucial we possess a vast high quality IP library that is essential in the AI area alongside a highly engaged user base that we are committed to serving with excellence. Second, a long term structural enhancement to our business economics. AI is poised to address major industry pain points, expanding our margins and maximizing capital efficiency. At the same time, our decentralized platform will boost content diversity to capture broader audience while IQIYI alternatives focus on crafting enduring premium IPs. Together these initiatives fuel on diversified monetization system, expanding membership, advertising and offline experiences, unlocking IP value across both domestic and global markets. Before we dive into Q1 details, I want to emphasize our core philosophy. The true power of technology is to empower humanity, not replace will serve audiences with deeply resonate content. It will empower creatures to overcome human limitations, turning their bodies inspiration into reality with absolute efficiency and freedom. Ultimately it will elevate the entire industry, unlocking new avenues for growth and helping more creatures, especially young talent, realize both their creative vision and commercial value. Now let’s move on to the detailed performance in Q1 let’s start with content we are pioneering AI driven storytelling and talent cultivation in Q1. We unveiled Peter Paul at Gai Deltra featuring a slate of 16 titles across science fiction, thriller, wuxia and fantasy genres, each running 11 to 20 minutes. NATO Pro powered key production process from capture design and scene setting to story volume, demonstrating AI transform transformative potential in professional content creation. In terms of our long form drama performance, the Punishment 2 became our second franchise with two seasons exceeding the 10,000 IT popularity score. Pursuit of Jet also surpassed 10,000, well all in cost per produced custom drama how dare you exceeded 9,000. Both pursuit of Jade and How Dare you resonate strongly with young female audiences, further solidifying our connection with these key demographics. Furthermore, we secured our leadership in realistic under suspense genres. Born to Be Alive earned the highest DOVA rating among all domestic drama releases in Q1 and the Devo Between Us tour and on Suspense Shelter was also well received by users. He shows how in house production Wander Together the top enlightened market share ranking for the first quarter. For animations, we expanded our offering with four key original titles, among these the long running the Great Ruler Dazuzan continued to captivate audiences and season two of How Dare you achieved strong synergy with its drama series adoption for micro dramas, original production contributed over half of revenue from this category. In Q1, AIGC has emerged as a powerful driver for content releases. In Q1 we launched more than three of the AI generated microdrammers, further enriching our offerings. Finally, for micro animation in an native format, we are rapidly expanding our library which feature over 14,000 titles as of quarter end with viewship continue to rise steadily. Next let me show our Q2 content pipeline. Our drama serials lineup features a rich variety of titles from historical epics to niche genres including Echoes of Southern Smooth, The Er Jiangye and Archives, the Nanyang Mystery Nambu Daoan among the already released titles, Born with Luck gained wide popularity driven by his innovative storytelling combining comedy and mystery and surpassed an IT popularized score of 10,000, becoming the third hero to reach such mark this year. For films, our pipeline includes original online movies the Sin Treat, Wing of Death, Marian Liji and the counterfeit Wei Chao Zhongha. For licensed titles, we will release the article hits on our platform like Pegasus 3 featuring Show Awakening of Insects in Silence, Jingle Wu Shang and Blades of the Gardens Building, along with the online film the Legend Hunter Xiong Jue. For warranty shows, we will continue to captivate audience with established franchise such as Firehouse Season 6, Become a Farmer, Season 4, the Wrap of China 2026 and yes I do Season 6 while launching new IP like wise of Youngs. For Micro Drummers, we have a diverse plate schedule including Perfect Match. And Spring grants of Phoenix Form Red for animations and children’s content. We will continue the long running against no Gods and debut a localized adaption of the BBC Classic Talented Width. Now turning to membership Business revenue grow sequentially primarily driven by premium titles including Pursuit of Jet, the Punishment Tool, How Dare you and Divorce Between Us. Operationally, our refined upselling strategies and value driven membership options successfully encourage users to extend their path, driving a year over year increase in average subscription duration for monthly subscribers this quarter. Additionally, all higher care estimate membership continued to scale driven by a highly differential different show aged value proposition than features free express packages Next moving on to advertising business for brand as revenue contribution from Target drama recorded double digit annual growth with titles like Born to Be Alive, How Dare you and Pursuit of Jade gained strong recognition from advertisers. Sector wise, Food and beverage, Internet services and E commerce all achieved double digit annual growth. Furthermore, we are expanding our advertising appeal across new content formats. For example, they partner with leading advertisers to co produce spin of content for micro dramas, creating new avenues for brand integration. On the technology front, AI continue to empower our advertising operations. We leverage Nano Pro to produce marketing materials and combine AI GC capabilities with all IPs to generate high quality and ad content. Learning Q2 Our focus will be on maximizing ad sales across premium variety shows, dramas and the traditional display ads. We further enhancing monetization on large screens. Concurrently, we will continue to leverage AI to optimize advertising efficiency for performance ads. The advertiser mix is healthier and more balanced. Revenue from small and mid sized advertisers recorded strong annual growth with suspended improvements by sector Internet services. E commerce and mini games delivered outstanding quotray with additionally monetization efficiency for microdrama emergency measured by revenue per inventory unit increased by over 60% year over year for the rest of the year. Our strategy for performance app focus on four key areas. First, expanding our client space client base across high growth verticals including Internet services, short form videos, mini games and AI tools. Second, capturing greater market share during peak window such as major E commerce festival. Third, enhancing monetization efficiency through AI powered capabilities. Finally, tapping into additional ad budgets by harnessing a more diverse content ecosystem and an upgraded ad placement system. Moving on to our business performance in region outside of mainland China, membership revenue increased by over 40% annually in Southeast Asian markets, membership revenue from Indonesia grew by over 80% annually. Meanwhile, Portuguese and Spanish speaking regions demonstrated robust growth with membership revenue from Brazil and Mexico both grew by over 100% annually. Average daily subscribers reached a new high. The global influence of C dramas continue to expand, notably Crystal Object less performance across multiple markets and secure top position on our international platform. Viewshape rankings is tough to Google Trends among all sea drivers broadcast during the Same window in 15 markets and set a record as the most searched Chinese drama on Google. Beyond C dramas, we are selling original local production to elevated the appeal of authentic library particularly in key Southeast Asia markets. In Q1, our first original Thailand shown ranking man Thailand delivered exceptional results setting multiple new records for variety shows on international platform. Google Trends confirmed its position as the most popular Thai variety show over the past three years and the title earned strong recognition from Advertisers. Meanwhile, our first original Indonesia drama is on track to premiere in Q2, marking a further step in our localization journey. Our overseas micro drama business also gained momentum with growing revenue contribution fueled by both licensed and original content. Our original production pipeline consistently deliver new releases across multiple languages including English, Thai, Korean and Indonesian. Next our experience business. We focus on two core areas IT based consumer products and IT led for IT based consumer products. Our soft operated merchandise deliver solid performance with collectible cars from pursuit of gate, setting a new sales record in its category for offline experience business. Our first IT led in Yongzhou, performed in line with expectation and was highly acclaimed for its scenery design, immersive experiences and technology enabled interactions. Going forward, we will continue refining operations and introducing new creative offerings to encourage repeat visits and on site consumption. Furthermore, we are leveraging an inference scanned in Yangzhou to drive to development of new locations in Kaibon and Beijing which are progressing smoothly. Now I would like to hand it to Ying for the financials. Thank you.
Ying
Thanks Mr. Gong and hello everyone. Let me walk you through the key numbers for Q1 total revenue was 6.2 billion RMB down 8% sequentially. Membership services revenue reached 4.2 billion RMB up 2% sequentially driven primarily by our diverse lineup of hit dramas. Online Advertising revenue was 1.2 billion RMB down 8% sequentially primarily due to seasonality. Content distribution revenue reached 358.7 million RMB down 54% essentially primarily because less number of drummers we distribute to third parties. Other revenues were 426.7 million RMB down 22% sequentially. Moving on to cost and expenses, we adopted a disciplined strategy in Q1 content cost was 3.7 billion RMB, down 2% sequentially. Total operating expenses were 1.2 billion RMB, down 10% sequentially. Moving on to cash flow, net cash provided by operating activities were 186 million RMB, reflecting some encouraging early signs in financial performance driven by our new business initiatives. Turning to bottom line and Cash balance Non GAAP operating loss was 149 million RMB and the non GAAP operating loss margin was approximately 2%. As of the end of Q1 we had cash cash equivalents restrict cash short term investments and long term restrict cash, including prepayments and other assets, and a total of 4 billion RMB. This sequential decrease in cash balance was primarily due to the repurchase of our 6.5% convertible senior note through 2028, which reduced our outstanding debt, further strengthening our capital structure. At quarter end, the company had the loan of US$636.6 million to PAG recorded under the line item of prepayments and other assets. We remain committed to delivering shareholder value over the long run. In March, we announced a proposed listing on the main Board of the Hong Kong Stock exchange and our first share repurchase program of up to US$100 million effective through September 2027. Up to now, we have repurchased a total of approximately 6.45 million for a total cost of US$8 million. For detailed financial data, please refer to our press release on our IR website. Now I’ll open the floor for Q and A.
OPERATOR
Thank you. If you wish to ask a question, please press Star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press Star2. If you are on a speakerphone, please pick up the handset to ask your question. We ask that you please ask your question in Chinese first and then translate the question into English. In the interest of time, please limit to one question per person. If you would like to ask further questions, you may press Star one again to rejoin the queue. Your first question comes from Zhequn Zhang with cicc. Please go ahead.
Zhequn Zhang (Analyst)
Thanks Management for taking my question and my question about Nattopro. The company previously launched NATO Pro AI agent for film and television content creation. Could Management share more details about the recent progress of Nattopro and any specific examples of its practical applications? In addition, how does management view the future commercialization prospects for Nattopro? Thank you.
Gongyu
The CEO Gongyu is taking this question so Naropa Pro is iQiyi’s proprietary platform for studio grade content production. It is powered by public large models, but it goes beyond generic models. It’s actually built upon our years of tech infrastructure and deep content expertise. For example, we have transformed years of industry know how from key areas such as screenwriting, filming and post production into AI agents and combine them with our core IP and digital assets to deliver accessible platform capabilities. Creator tools previously used only within iQIYIs such as the script evaluation and shop based reference search have now been incorporated to NATO Pro. NATOPORA has been available to all creators across the industry since April 20th. We now currently have over 10,000 active creators on board ranging from traditional production companies to independent creators. Content productions cover a wide variety of formats including the long form dramas, microdramas, micro animation and for videos and also for some commercial app content. Among which about 100 of them are it original titles. Projects. Actually recently launched a creator community as a platform for creators to interchange experiences and form some feedback and that will feed internal development for the upgrades in the coming up versions. And also this platform will feature some commercial matchmaking features upcoming next and then these will empower the creators with the full cycles for content creation to commercial monetization. In addition, the international version of NATO Pro is in development will be online soon. Regarding NATO Pro’s commercial prospect, it will serve as a standalone product to boost actually monetization capabilities and it will continue to reiterate and continue to improve the development and also to rollout upgraded version to create more better features. Thank you,
OPERATOR
Yes, it comes from Vicky Way City.
Vicky Way City
Thanks Management for taking my question. Would Management share some latest progress about the industry anti piracy updates? Thank you.
Cheng Yu (IR Director)
Thanks Vicky we’ll invite our Chief Contact Officer Hui to take this question.
Ji zong
Please go ahead. Ji zong. For the anti piracy situation we actually have observed very positive progress. Around the end of April and early May, the National Radio and Television Administration launched a targeted campaign to crack down on the piracy distribution of drama content across illegal websites, browsers, search engines and cloud storage services. The industry regulators actually attach great importance to this issue and and have established clear requirements for the prevention and handling of online copyright infringement, including some of the initiatives. To give us give you guys some examples. For example, we established a rapid response mechanism for infringement content, enabling real time communication between copyright owners and platforms to ensure swift response and removal. Second, the new policies and regulations actually enforce dual responsibilities for platforms and local authorities, requiring provincial and municipal bureaus to fulfill their local management duties, for example enhancing monitoring and improve processing efficiency. The platforms must resolve and remove infringing content within 24 hours of receiving a report or notice. For newly released dramas, hit series or key titles, the removal must be completed within four hours. And third, building a coordinated enforcement mechanism regularly reporting on infringement status, takedown rules and typical cases for repeat offenders who will be publicly named and handed over to copyright and police authorities for investigation and prosecution. This targeted campaign will be integrated with routine regulatory enforcement. Looking Ahead The National Copyright Administration’s Shortnet 2026 Anti Piracy Special Campaign has designated online copyright infringement and piracy as its top priority, signaling even stricter enforcement measures. Currently, we’re happy to see the efficiency of handling infringement has improved significantly and we believe the piracy issue will be substantially mitigated in the future. We believe strong copyright protection safeguards the commercial interests of all industry stakeholders boost the willingness to invest in high quality content creation and foster our virtuous cycle of content supply. And for Iqiyi, we will continue to upgrade our technology and operational mechanism to co build a healthy copyright ecosystem, ultimately helping to drive user growth and revenue of our long form video business thank you.
OPERATOR
Thank you. Your next question comes from Jenny Yuan with ubs. Please go ahead.
Jenny Yuan (Analyst)
So let me translate myself so Membership business saw sequential recovery in the first quarter, in particular overseas business delivered, robust growth momentum. So how does management view the sustainability of this improving trend? And how should we think about the membership business outlook into second quarter and beyond? Thank you. Thanks Jenny.
Yu Jiaoduan (Senior Vice President of Membership Business)
We’ll invite the Senior Vice President of Membership Business to take on those questions. Go ahead please. In Q1, driven by a strong slate of premium content and refined operational strategies, membership revenue delivered sequential growth in the first quarter. Meanwhile, We have a rich content pipeline for Q2. A number of recently launched titles actually have performed well. Noticeably. Born with Luck surpassed 10,000 on its popularity index, powered by its distinct suspense plus comedy narrative style. And in addition, we have also an extended slate for the second quarter, including the longboard drama for example Echoes of Thousand Moons, the Epic of Min the Air. And for variety shows we have five halves, Season six Become a Farmer, Season four and we believe these content were effectively reaching a broad membership base. Shambi. Looking ahead, looking for Q2, we’re looking at our operations and the sales priorities. For example, we’re focusing on reactivating dormant members, optimizing variety show schedules to offer more content for members, and expanding large screen membership via joint operating initiatives with smart TV manufacturers, and also leveraging the June 18th E Commerce Festival to boost annual and bundled memberships. And together we believe these efforts will expand our subscriber base and extend the subscription cycle. And looking ahead after stability and confidence consistency of our premium content pipeline continue to strengthen and coupled with our ongoing optimization of our membership operations, we believe our membership business will maintain a steady development trajectory. Thank you.
OPERATOR
Your next question comes from Thomas Chong with Jefferies. Please go ahead.
Thomas Chong (Analyst)
Wan Shanghai Chongja Woman high wide. Thanks management for taking my question and congratulations on the fast growth of your overseas business. Just now we talk about the fast growth in Southeast Asia. So may I ask about our investment strategies in Southeast Asia market and also can you share about some of the differences or similarities in terms of the the audience preference in domestic versus overseas? Thank you.
Cheng Yu (IR Director)
Thank you, Thomas. We’ll invite our senior vice president of our Low overseas business, Mr. To take on this question.
Xiangpai Yang (Senior Vice President of International and Uber Online Game Business)
Please go ahead. Okay. Well, I will take this part into two segments. First, for the key markets, currently our key markets are performing pretty well. And then for the Southeast Asia market has been growing quickly. And for the market that’s crucial for our Southeast Asia, we’ll continue to invest in countries such as Thailand, Indonesia, Malaysia, Vietnam and Philippines. And also for some of the emerging markets that also have grown pretty well, for example North America, Brazil, etc. So we’ll continue to invest in these areas and markets. On woman, Let’s start with content. So for us, our key differentiation is our C drama. So that will continue to be our key in terms of getting users and especially for these content that’s favorable and liked by young female users. And in key areas that I mentioned earlier that will increase the promotional activities and marketing activities for these markets. For example, for user growth, using content to attract and also to retain users. And for local content we’ll control and also have a good pace in terms of the content investment. Also in terms of the volume that we’re investing into the local content, we also focus for the young female users like genre and content for local production. And for a third for our matured markets, we’ll continue to cooperate with telecom carriers and also e commerce platforms to increase our membership and we will continue to use this strategy to replicate it to other markets that we’re trying to explore. Thank you. In terms of the user demographics for overseas audiences, majority focusing on the young female user who are under 40 years old. For the user demographic, for the user behaviors for overseas market, each major market is a bit different. Some of them have higher user, you know, switch cycles, better cycles, better retention than others. But overall speaking the ARPU for overseas memberships are higher than the domestic ones. Thank you.
OPERATOR
Your next question comes from Gigi Xiao with Guangfa Go ahead.
Gigi Xiao (Analyst)
I will translate the question myself. Seeing it’s efforts in Nado Pro and fostering AI driven creation and talent cultivation, how do we view the competitive landscape in the AI era? Thank you
Gongyu
CEO, going to take this session. Please go ahead. Yam Shirong. For long form video in the past our challenge has been the investment scale or the amount that we invest in content is massive. The content cost is high which means the investment risk is high which leads to less number of titles that invested and rolled out for the industry. And for any content that we invested, we typically focus on the premium head content that becomes a cycle. That was the other cycle that we faced and and the challenge we faced for AI it actually fundamentally improves the situation. Under the AI model, the content cost is much cheaper, the production cycle and production period is shorter which means there are more titles, more number of titles will be rolled out introduced in this industry. And because there are more commercial, there are more choices for users to enjoy. So user skill will increase under the new AI model. So overall speaking, we think it’s greatly beneficial for long term video to improve its business fundamentals and economics and also to attract more users to the platform. Pur. To better accommodate this industry trend, we rolled out a number of initiatives. For example the NATO Pro we discussed and also the Iqiyi account which means users can upload their content to our platform. Under the revenue share model, it will have the opportunity to introduce their content to more users to enjoy and to increase their revenue performance and also monetization capabilities. So under this whole backdrop, we believe the content cost will be lower and the number of video content will be increased. If we look back for the past 10 years of the Internet and especially for short form video and also microdrama in the recent years, we believe that technology is the fundamental driver in terms of the industry boom and industry development. So we think under the AI era, we think it becomes a great opportunity for the long term video to have better economics and better industry dynamics. Sure, sure. Thank you.
OPERATOR
Thank you. There are no further questions at this time. I’ll now hand back to the company for closing remarks.
Cheng Yu (IR Director)
Thank you everyone for participating on the call today. If you have further questions, don’t hesitate to contact us.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.
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