China's ‘Netflix' iQiyi is set to open a theme park with virtual reality based on its own shows

Core Viewpoint - iQiyi is set to open its first full-fledged theme park, "iQiyi Land," in Yangzhou, Jiangsu province, later this year, focusing on characters from its own shows and aiming to capitalize on the growing consumer spending on experiences in China [2][3]. Company Developments - The theme park will feature seven types of attractions, including immersive theater and virtual reality experiences, primarily based on iQiyi's films and television dramas [3]. - iQiyi has successfully developed VR-specific attractions, with over 40 locations opened in at least 20 Chinese cities since launching its first dedicated VR experience two years ago [5][6]. - The company’s shares rose nearly 3% in U.S. trading, reflecting positive market sentiment, with a year-to-date increase of 14% [8]. Industry Trends - The theme park revenue in mainland China is projected to exceed 480 billion yuan (approximately $67 billion) this year, with over 500 million visitors, a significant increase from 30.39 billion yuan in 2023 [9]. - The integration of virtual reality and AI tools in theme parks is becoming more prevalent, enhancing guest engagement and crowd management [10]. - The experience economy is a focus for China's consumption growth strategy, with tourism showing resilience in a challenging consumer market [12]. Competitive Landscape - Other companies, such as Legoland and Warner Bros. Discovery, are also expanding their presence in China, indicating a competitive environment for theme parks [4][13]. - iQiyi reported an 8% decline in revenue for 2024, highlighting the competitive pressures in the content space, despite the anticipated growth in the theme park sector [13].