Thank you for standing by, and welcome to the iQIYI Third Quarter 2025 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. Chang Yu. Please go ahead.
Thank you, Operator. Hello everyone, and thank you for joining iQIYI's Third Quarter 2025 earnings conference call. The company's results were released earlier today and are available on the company's investor relations website at iqiyi.com. On the call today are Mr. Yu Gong, our Founder, Director, and CEO; Mr. Jun Wang, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Youqiao Duan, Senior Vice President of our Membership Business; and Mr. Xianghua Yang, Senior Vice President of Movies and Overseas Business; and Mr. Gong Yu, Senior Vice President of Brand Advertising Business. Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun who will go through the financials. After the prepared remarks, the management team will participate in the Q&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.
Hello everyone. Thank you for joining us today. This summer, we captured the hearts of audiences with our original blockbuster drama, The Thriving Land . As we begin today's earnings call, I would like to share the journey of bringing the compelling story to life. The Thriving Land became a highlight of iQIYI's highly acclaimed masterpiece theater a collection renowned for its expertly crafted adaptation of famous novels. The Thriving Land tells compelling tales of three families across two generations in rural China in the 1920s. When production began in Chengdu last September, we heard questions and concerns. Can today's audience be drawn to a story set 100 years ago?
However, we built this project with strong confidence, backed by our years of experience in adapting literature to hit dramas: A Lifelong Journey, Ren Shijian, To the Wonder, One Out of Time, and The Northward , Beishang. It is our belief that great stories resonate universally. They transcend time, culture, and age, forging deep connections with viewers across regions and demographics. This ability to tell timeline stories is what sets long-form content apart from fast-paced, bite-sized entertainment. As we all now know, The Thriving Land became a major hit, exceeding the 10,000 mark on iQIYI popularity index score and topping this year's Enlightened Data Chart for Peak Daily Market Share. Its influence expanded far beyond our platform, making a meaningful impact on traditional TV and offline as well.
It achieved the highest average rating per episode on CCTV's drama channel and boosted tourism in its filming location, echoing the offline success of The N orthward and To the Wonder. The success of The Thriving Land is a no-cost incident. It is built on iQIYI's proven content methodology to create and amplify iQIYI values, from high-quality storytelling and advanced production technology to connect with broad and diverse audiences, and to develop our business model with IP at the core. From online to offline, from domestic markets to global audiences, our business model continues to evolve and scale. Today, our online operations are well-established; global expansion is accelerating, and our experienced business is advancing accordingly. On top of that, we are embracing exciting opportunities enabled by a supportive regulatory environment and advancements in AI.
These new regulatory policies lay a solid foundation for innovation and growth in the long-form video industry. At the same time, we leverage AI to transform how content is created and consumed. In July, we partnered with Google and ByteDance and launched a global AI short film competition aimed at discovering and nurturing talents who create short videos using AI technologies. We also collaborated with Academy Award-winning cinematographer Mr. Peter Pau on a co-branded AI theater featuring AI-driven content. We aim to leverage iQIYI's professional production expertise to cultivate the next generation of creators, pioneer innovative AI-driven content production methods, and deliver compelling AI-powered storytelling that resonates with audiences. Now, let's dive into the details of our business performance in Q3. Starting with content, which is a cornerstone of our business, our goal is to engage audiences with delivering the diverse, beloved content that drives commercial success.
For long-form dramas: We focus on top-notch stories with high commercial value. In the third quarter, we once again secured the top position in total viewership market share according to Enlightened Data. Our diverse, high-quality lineup included the nationwide hit The Thriving Land and our in-house custom detective series, Coroner's Diary , which emerged as a summer's dark horse with an iQIYI popularity index score exceeding 10,000. Additionally, the science fiction series, Movies, Bo Mian Ru, earned strong acclaim for its innovative storytelling, reaching a peak popularity score of over 8,800. Moving to Movies, we achieved major breakthroughs in original sales and article releases. The Shadow Age, Bo Feng Yu, grossed over RMB 1.2 billion, leading the summer box office and making a historic achievement for us.
On our online movie platform, we retained the top viewership market share for 15 consecutive quarters, driven by a diverse slate of key titles. In Q2, we launched an innovative revenue sharing model to maximize returns for films with limited box office opportunities. This strategy is gaining traction in Q3, with new titles like A Cool Fish 2, Wu Meng Shibei for Ji Tai Lai, generating over RMB 17 million in revenue sharing model in two months. For variety shows, our focus on top-tier titles delivered strong results in both popularity and revenue. The King of Stand-Up Comedy Season 2, Xi Jue Zhu Wang, Fan Kou Yi, our flagship IP, generated impressive membership and advertising revenues. It achieved an iQIYI popularity index of over 8,000 and dominated the generals with a leading market share according to Enlightened Data.
Additionally, our newly launched observation show, Her Prime, Ji Dai Dang Jia, sparked widespread discussions. To deepen audience engagement and elevate our variety show IP value, we introduced consumer products like collectible cars and co-branded merchandise collections, resulting in a stronger audience loyalty. Turning to micro-dramas, we continue to enhance our content ecosystem, achieving double-digit sequential growth in average daily viewing time and daily subscription revenue in the third quarter. Our micro-dramas also have attracted sponsorship from brand advertisers, with more partnership anticipated in the future. This growth has been driven by our focus on premium content, enhanced original production capabilities, and an expanded library of free titles. Our micro-drama content library now includes over 20,000 titles, with over half available for free. We have also established strong capabilities for consistently releasing original micro-dramas.
Hits such as Feet of Sweet Life, Yuanqi Fan Sheng, Nurturing the Night, Si Yang Ye Si, and Immortal Paradise, Lin Shi The Heng Tang, resonate strongly with audiences. Additionally, we introduced a dedicated micro-animation channel, Man Ju, and kicked off original production. Micro-animation is an innovative format of short-form animation that has experienced rapid growth in the past year, following the success of micro-drama and heavily leveraging AI technology. For animations, we continue to improve our original production capabilities. In the third quarter, Over the Divide Realms, Sheng Guo Zhi Shang continued to enjoy strong viewership. Additionally, our highly regarded original production Love Between Fairy and the Devil, Fan Ling Ju, returned with a second season, captivating loyal audiences and driving high engagement. Next, let me share our exciting slate of content for the first quarter.
The diverse drama pipeline includes Fated Hearts, Yi Xiao Zui Ge, Sword and Beloved, Candy Jian Xin, Silent Honor, Chen Mo De Rong Yao, Dead End, Shui Mi Gong, Strange Tale of Tang Dynasty 3 to Chang'an, Tang Chao Gui Shu Lu Zhi Chang'an, Legend of the Magnate, Da Shun Yi Ren, Speed and Love, Shuang Gui, and Silent Times, Feng Yu Chong. The movie pipeline includes our original sales article film, Skin Phi Nang for sales article release, and our original sales article hit, The Shadow's Edge, for online streaming. The first batch of original internet films and the emerging film projects, Biu Yun Ji Hua, and the licensed films such as Dive to Rise, Nanjing Zhao Heng Guan, The Legend of He Tu, Luo Xiao He Zhan Ji 2, The Volunteers, Peace and Love, Zhuan Jun Yu Xue He Ping, and Nobody: Lang Lang Shan Xiao Yong Guan.
The original variety show includes flagship IP Blooming Journey 2, Yi Lu Fan Hua, Hi Young Farmers, Ni Hao Zhong Zhi Shao Nian, and the brand new IP Wander Together, Yu Zhou Shan Shuo Qi Zhu Yi. The micro-drama pipeline includes the first micro-drama based on the highly popular IP Strange Tale of Tang Dynasty, titled Tang Dynasty Mysteries, The Poison Conspiracy, Tang Gui Qi Tan Zhi Chang'an Xian Wei, as well as For Xing Yu in My Final Days, San Miao Yu Jian Ni, and Saint Mark's Destiny, Xiu Gu. The animation and children's content includes new animation Ascendant of the Night Sun, Jiu Yang Wu Shen, Returning Cartoon, Their Squad Season 4, Wu Li Lu Dan Duan, and a new IP Cayman and the First Food Truck, Xiao Tu Miao Fan Chu.
Moving on to membership services, we aim to build a household name membership brand with brand market appeal, backed by a vibrant content ecosystem and exceptional services. Membership service revenue recorded sequential growth in Q3, driven mainly by original hit dramas like The Thriving Land and Coroner's Diary, as well as sales article mega hit Nezha 2. Beyond content, we are increasing our efforts to enhance membership services and deliver unmatched value. Our family-oriented entertainment plan stands out with exclusive perks like express packages, offering early access to show, invalid proven driver of new subscriptions and upgrades to this premium talent. The currency experience program, Yun Mo Tang, continues to boost engagement with meaningful revenue growth year over year. We have created stronger synergy between membership and advertising revenues by introducing branded films within the program. We are also integrating membership experience with top IPs.
This quarter, we launched IP-themed membership cards for Nezha 2 and Journey of Legend. The Journey of Legend, Fu Shanghai, giving fans a deeper connection to their favorite story and characters. Connecting with our audience is at the heart of what we do. Our annual flagship July 17th iQIYI membership festival has become a signature fan appreciation event, loaded with exclusive perks and irresistible subscription offers. We also strengthened membership value and loyalty through over 10 VIP-only gatherings, ranging from fan meetups to advanced screenings. We have elevated membership performance by focusing on operational optimization, aiming to boost membership value and encourage subscribers to stay with our service longer. This includes initiatives to promote longer-term plans and targeted promotions for specific audiences. Additionally, we expanded our bundled membership partnership to 16 brands while broadening our sales channel across e-commerce and telecom platforms.
Moving on to advertising business: In the third quarter, Branded Ads recorded double-digit annual growth, mainly driven by premium variety shows like The King of Stand-Up Comedy Season 2 and hit dramas like The Journey of Legend and The Thriving Land. Our content-related ad solutions continue to gain traction, contributing over 60% of brand ad revenue. Key verticals such as food and beverage, internet services and e-commerce, beauty and personal care, all showed robust annual growth. We use AI to drive production, innovation, and advertising efficiency, with features like creative bulletin charts and AI-generated ad materials, including animation style mid-show for innovative marketing solutions. As we enter Q4, we aim to capitalize on major advertising opportunities such as W11 Shopping Festival, Christmas and New Year campaigns, and new smartphone launches. Our focus will be on maximizing ad sales from premium variety shows, dramas, and our drama theater brands.
We are further enhancing monetization on smart TVs. We will continue leveraging AI to improve brand advertising efficiency. For performance ads, we now have a healthier and more balanced advertiser portfolio, with revenue dependent on individual clients. By industry, internet services and education and training will stand out contributors this quarter. Looking ahead, we will focus on capturing new budgets in the internet services sector, including tools, social platforms, and mini-games, while scaling up revenue in education and training, wellness management, and e-commerce. Additionally, we plan to expand our performance ad inventory and utilize AI to further enhance monetization efficiency. Moving on to technology and products, we continue to harness cutting-edge technologies to transform the entertainment experience, improve content production efficiency, and boost content value across our platform. On the content creation front, we are leveraging AI to transform storytelling. A notable example is our partnership with Academy Award-winning Mr. Peter Pau.
Together, we will launch the Peter Pau iQIYI Theater to pioneer the next generation of AI-driven storytelling and talent development. The first titles are set to premiere soon, which we are very excited for. Additionally, we are using AI to produce high-quality original micro-animation at much lower cost. Another unique example is the AI-powered iQIYI Reel Collection, Xu Kan, which now covers all major content categories. This feature utilizes a smart editing agent to automatically convert long-form videos into vertical shots, which are then included in iQIYI Reel Collections. iQIYI Reel Collections offers users a view experience akin to that of micro-dramas. We are transforming user engagement with Taohou and AI-powered personnel assistant that provides personalized support, including video search recommendations and plot insights. The latest update improved recommendations for micro-dramas and short-form videos alongside long-form content, while also enhancing plot Q&A capabilities.
Additionally, we introduced binge-watching rankings, allowing users to track time spent on their favorite series and view their rankings. This feature has received highly positive feedback from fans. In addition to advancing AI applications, we are driving the industrialization of video production with cutting-edge virtual production technology. Our virtual production capabilities now support both in-house and external projects. This quarter, we launched an omnidirectional motion-simulating vehicle rig filming platform. Powered by our in-house developed iQIYI Stage virtual production system, the platform naturally enhances the efficiency of high-frequency vehicle scene shots. It delivers streamlined, repeatable workflows and has already been utilized for virtual production in major sales article productions. Moving on to business performance in regions outside of mainland China, we maintained strong growth momentum in Q3, with membership revenue increased by over 40% annually.
Markets like Brazil, five Spanish-speaking regions, Mexico, and Indonesia had membership revenue more than doubled year over year. In this quarter, the average daily subscribers also reached an all-time high. The strong performance is supported by an exceptional content lineup. Our C-drama, Chinese drama, continues to gain popularity globally, with revenues growing double-digit both annually and sequentially. Notably, the Thai Dubbed version of Coroner's Diary set platform records for both viewing time and peak revenue within its language segment. It also topped iQIYI popularity charts in 13 overseas markets. Meanwhile, our local content slate also exceeded King Jaro s series. Yunhun Chongqing emerged as a phenomenon in Thai language content this year, generating the highest membership revenue among all Thai dramas on our platform and topping related rankings on Google and Twitter. Beyond long-form content, micro-dramas continue to build strong momentum overseas.
Membership revenue from micro-dramas grew 114% sequentially by the end of September. Micro-dramas ranked second only to long-form dramas across several core metrics, including membership revenue and viewing time. Moreover, multiple iQIYI original micro-dramas gained solid traction abroad. For example, How Dare You! has shown a strong long-tail effect three months post-launch. We are also expanding into locally produced micro-dramas. Multiple projects in English, Thai, Korean, and Indonesian are in production and targeted for launch this year. Looking ahead, we will continue to deliver high-quality content to international audiences, deepen partnerships with telecom operators and local partners, and leverage AI to drive user acquisition. Moving on to experience business, while we are focusing on two key areas: IP-based consumer products and offline experiences, we are leveraging our extensive and unique IP resources to build a more robust entertainment ecosystem.
For IP-based consumer products, we have upgraded our business model from a licensing-only approach to a dual-track strategy, combining self-operated merchandise with licensing. Q3 growth was strong, with revenue from IP-based consumer products more than doubling year over year. In particular, revenue from self-operated merchandise grew more than 70% sequentially, driven mainly by collectible cars from top drama titles. Meanwhile, our self-operated portfolio has expanded beyond collectible cars into additional categories, supported by the establishment of in-house teams. For IP licensing, the hit drama The Journey of Legend has partnered with over 30 licensees, setting a new record while spanning multiple sectors, including e-commerce, FMCG, and beauty. In our offline experience business, we are pioneers in this emerging field, and the heart of this initiative is iQIYI Labs, which are designed to operate under an asset-light model.
Our two locations, Yangzhou and Kaifeng, are under development, with Yangzhou iQIYI Labs scheduled to open early next year. A third site in Beijing has also been announced. By integrating technologies like AI and XR with our content iQIYI Labs, we will provide interactive and scalable experiences that are faster to iterate and more efficient than traditional theme parks. This approach reduces space and capital requirements, with revenues expected to come mainly from ticket sales and other on-site spending. As 2025 draws to a close, we reflect on a year of rapid transformation driven by technical innovation and evolving business models. We are not merely adapting; we are advancing, fueled by our thriving overseas expansion, growing experience business, and ongoing AI investments. Breakthroughs in any of these areas could elevate us to a new height.
Amid this change, our core remains the same: creating premium content IP supported by a proven commercial model. This foundation earns us the loyalty of hundreds of millions of users and the trust of industry partners. Moving forward, we will continue delivering quality content, fostering creativity with partners, and driving long-term value for shareholders. Now, let me hand it over to Jun for the financials.
Thank you, Mr. Gong, and hello everyone. Now, let me walk you through the key numbers for the third quarter. The total revenue for the third quarter was RMB 6.7 billion, up 1% sequentially. The membership services revenue reached RMB 4.2 billion, up 3% sequentially, driven mainly by original blockbuster dramas and theatrical mega-hits Nezha 2 during the summer season. The online advertising revenue was RMB 1.2 billion, decreased by 2% sequentially, as the performance in the second quarter benefited from the major advertising campaigns.
The content distribution revenue reached RMB 644.5 million, up 48% sequentially. The increase was mainly driven by the strong distribution performance of the original theatrical movie invested by iQIYI, along with the growth in transactions for dramas. Other revenues were RMB 585 million, down 29% sequentially. Moving on to costs and expenses, the current cost was RMB 4 billion, up 7% sequentially, as we launched a more diverse selection of premium content during the peak summer season. The total operating expenses were RMB 1.3 billion, down 3% sequentially, benefited from our disciplined expense management. Now, turning to profits and cash balances, the non-GAAP operating loss was RMB 21.9 million. Non-GAAP operating loss margin was 0.3%. As of the end of the third quarter, we had cash, cash equivalents, restricted cash, short-term investments, and long-term restricted cash included in the prepayments and other assets, a total of RMB 4.9 billion.
At the quarter end, the company had a loan of $522.5 million to PAG recorded under amounts due from related parties. For more detailed financial data, please refer to our press release on our IR website. Now, we will open the floor for Q&A.
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 star two. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all on the call, if you wish to ask your question to management in Chinese, please then translate your question into English. Your first question comes from Zhiking Zhang from CICC. Please go ahead.
[Foreign language]
Thanks, Management, for taking my question. It has been three months since the new regulations issued. Circle Management provided an update on the progress. Thank you.
Thank you, Zhiking. We'll invite our Chief Content Officer, Mr. Xiaohui Wang, to answer this question.
[Foreign language]
The core objective of the new policies is to promote the healthy development of the long-form video industry. In the past two months since its implementation, we have observed positive progress in several areas, including the concurrent review of key dramas by the national and provincial administrations, as well as the exploration of concurrent review of broadcasting for new content formats such as anthology drama, multi-season drama, multi-art drama, and sitcoms, as well as the optimization of co-review methods.
[Foreign language]
Under the new policy environment, we are actively innovating in content production and broadcasting models. For example, we're exploring a brand new content format called Online Feature Series and integrating it into our existing emerging film project collaboration framework. Going through a revenue-sharing model with our partners, we aim to attract more creative talent and high-quality content, strongly driving innovation and also growth in the industry.
[Foreign language]
Based on the current progress of implementation, it is clear that the new policies have sent positive signals to the industry. Some of our projects have already benefited by the policy support, allowing them to reach a ready-to-broadcast status more quickly. As productions proceed smoothly in the future, we will gradually see the broad benefits of the policies take shape. In the long term, the policies will drive the industry into a new growth phase, benefiting professionals across the board.
Thank you. Your next question comes from Vicky Wei from CITI . Please go ahead.
[Foreign language]
Thanks, Management, for taking my question. Will Management share some color about the membership business? Thank you.
Thanks, Vicky. We'll invite our Senior Vice President of Youqiao Duan to take this question.
[Foreign language]
Since the end of September, our membership business has shown nice growth momentum driven by three main factors. First, the continual release of high-quality content. Second, the ongoing enhancement of member services and benefits. Third, the optimization of marketing and sales strategy, such as expanding bundled memberships and offering targeted discounts for teachers and students.
[Foreign language]
The Silent Honor, which was released at the end of September, broke the demographic boundaries and captured the hearts of young audiences. Our female-oriented content, such as Fated Hearts and Sword and Beloved, along with the suspense theater titles like The Hunt and The Dead End, also gained wide popularity.
[Foreign language]
The recently released Strange Tale of Tang Dynasty 3 to Chang'an, which is the third drama of the Strange Tale of Tang Dynasty IP series, received widespread acclaim shortly after its premiere, with its popularity index on the iQIYI platform surpassing 10,000. It became the second drama in the series to hit this milestone, making the Strange Tale of Tang Dynasty IP the first IP series to have two seasons exceeding the 10,000 popularity mark. The latest release in the series, while building on the classic elements, introduced more innovative content, showcasing the strength of high-quality IP series development and also successfully attracting and retaining a loyal audience.
[Foreign language]
At the same time, we have enhanced membership value and the perception of benefits through more refined operations, for example, offering more diverse subscription options, offering member-only IP merchandise, and also offline events tailored for premium members.
[Foreign language]
We're confident in achieving sustainable growth in our membership business with the support of high-quality content and enhanced member benefits and services. Thank you.
Thank you. Your next question comes from Felix Liu from UBS. Please go ahead.
[Foreign language]
Thank you, Management, for taking my question. We noticed that Chinese culture industries have made good progress in the overseas markets lately. Can Management share more progress on your overseas expansion and strategy? Thank you.
Thanks, Felix. We'll invite our Senior Vice President of our Overseas Business, Mr. Xianghua Yang, to take this question. Please.
[Foreign language]
Our overseas business has strong performance this year, with Q3 total revenue and membership revenue achieving the highest annual sequential growth in the past two years.
[Foreign language]
We see the Chinese content serves as the cornerstone of our overseas content portfolio, and IPE has become the top choice for an increasing number of overseas users to watch Chinese-language content. We continue to promote Chinese-language content across various markets and have seen a significant increase in its influence in major overseas markets, which is effectively driving the growth in user base and also the membership of members.
[Foreign language]
In terms of local content, we have engaged in both licensing and original productions in Thailand, Malaysia, Indonesia, and Taiwan. Among these, Thailand has been our most successful market. This year, we launched several hit titles such as the Thai drama "Kinjara: The Series," which set new records on our overseas platform in terms of both viewing hours and revenue for Thai content. With subtitles added, our original Thai dramas have been distributed in other markets, and the revenue from our original Thai dramas in the U.S. and other overseas markets has already surpassed that of Thailand's domestic markets. We are pleased to see that Thai dramas have become the second globally recognized content category after C-dramas. Looking ahead, we plan to increase the production of original Thai, Malaysian, and Indonesian dramas.
[Foreign language]
At the beginning of the year, we mentioned that some of the newly developed markets, such as the Middle East, Spanish-speaking regions in Latin America, and Brazil regions. These regions have maintained rapid growth throughout the year, with significant increases in membership revenue and subscriber numbers.
[Foreign language]
In the future, we will continue to deliver high-quality content while leveraging AI technology to enhance content production and promotional efficiency. Currently, over 70% of promotional materials for our overseas content are generated using AI, which is significantly boosting our market efficiency. Thank you.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone. Your next question comes from Gigi Zhao from Guangfa Securities. Please go ahead.
[Foreign language] I will translate the question myself. The application of AI in the global film and television industry has been advancing in increasing depth to management, share strategic insights and future plans pertaining to AI adoption, content production, and business layout. Thank you.
Thank you. We'll have our CEO, Mr. Yu Gong, to take this question.
[Foreign language]
Okay. I think for the AI technology, it provides a very opportunity for IPE to take analogy. For example, in the past 20 years, actually, the internet actually provided online video industry an opportunity and an advantage to surpass traditional linear TVs. We think currently with the large language models for AI actually provides the similar opportunity outlook for IPE.
[Foreign language]
In the past few years, actually, AI technology has, deeply integrated in our, operations and helping us to achieve goals in three key areas. The first one is, to increase our operational efficiency. We use AI for marketing materials, for example, automatically to generate posters and, and also promoting promotional marketing materials. Also we use that for overseas content translation, while the cost is much cheaper compared to the, human, labor side and also faster.
The second point is AI actually boosts monetization capabilities as it can efficiently produce advertising creative materials, and we can use that to optimize placement algorithms, which help us to improve the targeting accuracy and also conversion rate. The third point is AI can empower us to, for, content production. Actually, we use AI as support for our internal production capabilities. For example, we have a screenplay workshop in iQIYI. We use that to significantly enhance the evaluation and also the creation capabilities for novels and scripts. And also we have an image workshop feature, which can effectively support early-stage creative development, for example, by providing concept posters and also storyboard generations and character design. The fourth point is we actually use AI to roll out some basic user features, for example, Taodou personal assistant, and also the iQIYI Reel Collection feature, to improve user viewing experience.
For example, based on the AI, we roll out the Tao World, Tao Dou, and also iJump features. All of these will improve the viewing experiences.
[Foreign language]
The above mentioned the four points earlier are the ones we already use in our daily operations. We'll keep refining them and upgrading them. Hopefully, it will bring more benefits. Now, and going forward, we'll, you know, focus on three major areas. The first one is the IPE's intelligent production system, which actually was previously reserved for internal use. We will, going forward, gradually open up its core functions for our close partners, so helping them to leverage AI to enhance their production capabilities.
[Foreign language]
The third point is we will continue to, you know, promote, on promoting using AI, in the market and also for the industry. For example, we launched initiatives such as the AI short film creation competition, as I mentioned earlier in the opening remarks, and also partnering up with Academy Award winners, Peter Pau, to roll out the AI theater. I think the main purpose for these initiatives are to discover and nurture AIGC creative talents through collaborations and also market promotions. The purpose is to foster an innovation-driven content ecosystem going forward.
[Foreign language]
And last but not least, you know, our focus will be, you know, collaborating with our partners and also utilizing our current AI technologies to explore more on a large-scale application of AIGC in areas, for example, like microanimations, animations, educational content, documentaries, etc. Hopefully, AI will become a core engine of content creation. This is the first stage, and going forward, the bigger picture will be, you know, utilize AIGC to apply them in our long-form video content, for example, dramas, for example, films.
[Foreign language]
We are estimating in probably in the next one to two years, that's on the slower side, or maybe three years, but we think, you know, overall speaking, no more than five years, AI will bring dramatic change to our internet space and also to the video content creation industry. Going forward, and also currently, we have been investing heavily in AIGC and also AI technology applications, and this is one of the amount of core area of investment for the company right now. Hopefully going forward, we can utilize AI to do more creative content and also to change the content ecosystem. Thank you.
Thank you. That concludes our question and answer session. I'll now hand back to management for closing remarks.
Thank you, everyone, for participating in the call today. If you have further questions, do not hesitate to contact us. See you next quarter. Thank you.
[Foreign language]
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.