China’s top Netflix-style app operator iQiyi plans on-demand cinemas in online-to-offline push

China’s biggest online streaming app operator is going into the cinema business, with a twist.
Instead of showing up at a certain time to view a certain movie, film buffs can now choose to book private on-demand cinemas by iQiyi to play their choice from the Beijing-based company’s library of titles.
The first of such on-demand cinemas was opened today in Zhongshan city in the southern Guangdong province, according to iQiyi in a release, which did not disclose the amount of its investment.

The company said it will soon open more of these cinemas, to be called Yuke, in more of China’s first- and second-tier cities.The move by iQiyi, a spin-off from Chinese online search giant Baidu, to explore offline business opportunities draws a parallel with the more mature trend of the country's internet giants, especially those in e-commerce, actively buying up and teaming up with bricks-and-mortar retailers to integrate online and offline commerce.

Alibaba Group Holding, the parent company of the South China Morning Post, is leading what it terms the “New Retail” wave by investing billions in grocery chains and shopping malls to provide seamless online-to-offline shopping experience.

The launch of the on-demand cinemas creates opportunities for the integration of retail services and offline consumption, with merchandise related to iQiyi online content available for purchase in cinemas, according to the company.

iQiyi, which had 61.3 million paid subscribers as of March, will take advantage of its “strong brand awareness, massive user base, popular content and advanced technology to contribute to the growth of this booming market and extend our premium viewing experience to offline consumers,” Yang Xianghua, iQiyi’s senior vice-president, said in a statement.