Men stand near a booth with signs of iQiyi, during the Beijing International Film Festival, in Beijing, China September 20, 2021. REUTERS/Tingshu Wang
HONG KONG, Nov 18 (Reuters Breakingviews) – China’s iQiyi (IQ.O), the country’s answer to Netflix (NFLX.O), just can’t catch a break. Amid disappointing revenue growth, the operating loss at the streaming service owned by search engine giant Baidu (9888.HK) widened to 1.4 billion yuan ($220 million) in the three months to September, from 1.2 billion yuan in the same period last year. Broader macroeconomic woes have hit advertising dollars, while tightening censorship rules and pandemic curbs are holding up the launch of new online shows and movies. At the low end of the company’s financial guidance, iQiyi expects fourth-quarter revenue to fall as much as 5% year-on-year. Investors in New York promptly wiped out $1 billion in market value.
The content delays are worrying. iQiyi lost 2.6 million subscribers since June, and analysts at China Renaissance reckon another 3.5 million will walk by the end of December. The stock is now down three-quarters from a March peak this year. China’s once-rising video star is in need of a new plot. (By Robyn Mak)
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