iQIYI is one of China’s leading streaming and entertainment platforms, known for its innovative content delivery and immersive experiences. The company has now announced its second downloadable theme park in China, marking a significant expansion beyond digital streaming into physical entertainment spaces.

This new theme park, named iQIYI LAND, follows the success of the first park in Yangzhou, Jiangsu Province. Its launch in Kaifeng, Henan Province, signals iQIYI’s commitment to blending technology with traditional amusement park attractions. The integration of cutting-edge technologies such as virtual reality (VR) and artificial intelligence (AI) positions iQIYI LAND at the forefront of modern theme parks.

The significance of this development stretches beyond iQIYI itself. It reflects a broader shift within the entertainment industry toward immersive, interactive experiences that engage audiences on multiple sensory levels. By creating a physical space that complements its digital ecosystem, iQIYI is setting new standards for how entertainment brands connect with consumers in China’s rapidly evolving market.

iQIYI’s Expansion into Theme Parks

iQIYI is venturing into the theme park industry with its innovative iQIYI LAND, focusing on immersive theater experiences, holographic spaces, and MR (Mixed Reality) adventures. The core entertainment sectors of iQIYI LAND are designed to captivate visitors through cutting-edge technologies.

• Immersive Theater: iQIYI aims to revolutionize traditional theater experiences by incorporating interactive elements and virtual storytelling.
• Holographic Spaces: Visitors can expect mind-bending holographic displays that blur the lines between reality and imagination.
• MR Experiences: The utilization of Mixed Reality technology allows for unique and engaging attractions that transport guests to fantastical realms.

By integrating proprietary game engines, VR, and AI technologies, iQIYI sets itself apart in the theme park landscape. This forward-thinking approach promises a blend of entertainment and innovation that will redefine the theme park experience for visitors.

China’s Booming Theme Park Industry

The China theme park sector has experienced rapid growth, reaching RMB 60 billion (USD 8.2 billion) in 2023. Projections estimate this market will nearly double to RMB 110 billion (USD 15 billion) by 2028, reflecting a surge in domestic tourism and entertainment demand. This expansion is driven by rising disposable incomes, urbanization, and an increasing appetite for immersive leisure experiences.

Kaifeng’s selection as the site for iQIYI LAND taps into these favorable trends with distinct advantages:

• Strategic location: near Longting Lake Park offers scenic value and cultural appeal.
• Excellent transportation connectivity: links Kaifeng to Zhengzhou (population 13 million) within 30 minutes via high-speed rail.
• Close proximity to Luoyang (7 million residents) reachable within one hour expands the visitor catchment area.
• Access to an estimated 20 million potential visitors from surrounding metropolitan zones.

This combination of robust market growth and prime location underpins iQIYI’s decision to build its second downloadable theme park in Kaifeng.

Technology Integration in iQIYI’s Theme Parks

How iQIYI integrates VR and AI into offline experiences at their theme parks:

• iQIYI leverages cutting-edge virtual reality (VR) and artificial intelligence (AI) technologies to create immersive experiences at their theme parks.
• By integrating VR, visitors can be transported to fantastical worlds and engage with content in a more interactive way.
• AI enhances the user experience by personalizing interactions based on individual preferences, creating a dynamic and engaging environment for visitors.

Importance of frequent content updates for immersive engagement:

• To keep visitors engaged and coming back for more, iQIYI focuses on regular content updates within their theme parks.
• By continuously refreshing the attractions and experiences, they ensure that visitors have new and exciting reasons to return, fostering long-term engagement and loyalty.

Strategic Location Choice for iQIYI LAND in Kaifeng

Reasons behind selecting Kaifeng for the new theme park:

• Kaifeng location: Situated near Longting Lake Park, Kaifeng offers a culturally rich environment that aligns with iQIYI’s immersive entertainment vision.
• Transportation connectivity: With high-speed rail lines linking Kaifeng to major metropolitan areas like Zhengzhou and Luoyang, iQIYI gains access to millions of potential visitors seeking unique experiences.

Monetization Strategies and Revenue Diversification at iQIYI LAND

iQIYI uses its wide range of intellectual property (IP) assets to turn digital content into interactive experiences at its theme parks. This strategy enables the company to make money from its IP in a physical, captivating way that draws in visitors beyond just streaming services.

Key aspects include:

• IP Monetization through Physical Interaction: Fans engage directly with beloved characters and storylines, creating deeper emotional connections and increasing brand loyalty.
• Diversified Revenue Streams: Expanding into offline venues reduces reliance on digital subscriptions and advertising, mitigating financial risks tied to market fluctuations.
• Asset-Light Model: By focusing on technology-driven experiences rather than heavy infrastructure, iQIYI can adapt quickly to trends and optimize operational costs.

This approach sets iQIYI LAND apart as a one-of-a-kind combination of entertainment and commerce, fostering long-term growth through various channels.

Financial Implications and Market Trends in the Theme Park Industry

The theme park industry remains a capital-intensive industry, requiring substantial upfront investments for construction, technology integration, and ongoing operations. High costs increase financial risks, especially as returns can take years to materialize. iQIYI announces second downloadable theme park in China at a time when the sector is experiencing rapid growth.

• China’s theme park market revenue reached RMB 60 billion in 2023 and is projected to exceed RMB 110 billion by 2028.
• Rising consumer demand drives expansion, but competition intensifies among established players.
• iQIYI’s approach focuses on revenue diversification by blending digital IP with physical experiences, reducing dependency on traditional content streams.
• Technology-driven updates and immersive engagement aim to sustain visitor interest and maximize profitability in a competitive landscape.

Conclusion

iQIYI Inc.’s recent announcement about their second downloadable theme park in China is set to make a big impact on the entertainment industry and raise visitor expectations. By focusing on immersive technologies and innovative entertainment experiences, iQIYI is moving towards creating a more interactive and engaging entertainment ecosystem that goes beyond traditional digital content. This shift signifies a change in the industry where theme parks are embracing new technologies to enhance visitor experiences.

As iQIYI continues to push boundaries and set new standards in theme park experiences, we can expect to see transformation and increased competition in the industry over the next few years. Other companies will likely respond by investing in their own immersive attractions and finding ways to differentiate themselves from iQIYI’s offerings.

Overall, iQIYI’s announcement represents an exciting development for both the company and the entertainment industry as a whole. It demonstrates the growing importance of technology in shaping how we experience leisure activities and highlights the potential for innovation within established sectors like theme parks.