At iQIYI’s annual conference in Shanghai on September 25, 2023, CEO Gong Yu made an exciting announcement: ’Chinese dramas have surpassed Korean dramas.’ He backed this up with Google search data from 2018 to June this year, explaining, “While the media has been emphasizing the success of Korean dramas on Netflix, the data tells a different story.”
How Chinese Dramas Are Winning Over Southeast Asian Audiences
’Gong Yu’ also shared findings from a survey by AMPD, stating, “Chinese dramas have surpassed Korean dramas in terms of popularity and market share in the Southeast Asian market in the first quarter of this year, becoming the most preferred content among local users.” This shows how Chinese dramas are resonating with viewers in this region.
About iQIYI
Founded in 2010, iQIYI now has 100 million subscribers, making it the fifth-largest OTT platform in the world, following Netflix, Amazon Prime, Disney Plus, and Tencent Video. Since 2014, the company has been producing around 200 original pieces each year. They’ve also embraced AI technology, describing themselves as ’a company that’s half Hollywood and half Silicon Valley.’ They hold conferences in April and September to discuss their business and future plans.
The Growing Trend of Overseas Expansion
Gong Yu’s comments highlight a larger trend: China’s content industry is expanding into international markets, especially in Southeast Asia. ’iQIYI and Tencent Video,’ the two biggest OTT platforms in China, have now overtaken Netflix and Disney Plus in this region. iQIYI launched its global service app in 2019, focusing on Southeast Asia, and found success with original dramas like “The Untamed” and “The Longest Day in Chang’an” in Malaysia, Thailand, and Singapore. The company even hired an executive who previously handled negotiations with Southeast Asian governments for Netflix. ’Tencent Video’ has also expanded by acquiring iFlix, a major OTT platform in Malaysia, with its global service “WeTV” achieving over 200 million downloads.
Cultural Influence: Chinese Dramas Now Preferred Over Korean Dramas
Some analysts argue that China is strategically taking over cultural markets in developing Asian countries. While Korea made strides by moving into Hollywood, China is focusing on the vast opportunities in Southeast Asia. This region has a significant Chinese population, which helps create a deeper cultural connection and makes viewers more open to Chinese content compared to audiences in the US and Europe.
Rising production costs and difficulties in securing rights for Korean dramas are also factors contributing to the growing popularity of Chinese dramas in Southeast Asia. A Beijing content industry worker remarked, “While Korean dramas have the strength of being ‘well-made,’ their production volume is significantly lower compared to Chinese dramas, and their rights are expensive, making them a ‘luxury’ that Southeast Asian consumers hesitate to consume.”
iQIYI’s Strategy: Leveraging AI and Local Culture to Surpass Korean Dramas
Gong Yu emphasized how AI has transformed iQIYI’s operations. The company uses AI for various tasks like character setting, script evaluation, and video composition. He noted, ’Without AI models, the company would be paralyzed like a power outage. AI has infiltrated all aspects of iQIYI’s operations.’ He added, “When everyone in China was infected with COVID-19 in late 2022, ChatGPT emerged, and within a year and a half, AI has been revolutionizing content creation worldwide.”
Adapting to Market Changes
The experience of navigating a rapidly changing domestic drama market has prepared Chinese content companies for overseas expansion. In China, there’s a thriving variety of content formats, from traditional 45-minute episodes to mid-form and short-form content. A Chinese content industry official said, ’The saturation of the domestic market and strict regulations have inevitably accelerated the overseas expansion of Chinese OTT companies.’
This shift reflects how Chinese dramas are now at the forefront, successfully capturing audiences both at home and abroad.
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