张一鸣的“小生意”，堵死爱奇艺的出路

Core Viewpoint - iQIYI's Q2 financial report shows a significant decline in revenue and a shift from profit to loss, highlighting the challenges faced in the competitive short drama market [2][18][31] Group 1: iQIYI's Financial Performance - iQIYI's revenue fell to 66.3 billion yuan, a year-on-year decrease of 11%, with a net loss of 1.34 billion yuan compared to a profit of 68.7 million yuan in the same period last year [2][18][20] - Membership service revenue decreased by 9% to 40.9 billion yuan, while online advertising service revenue dropped by 13% to 12.7 billion yuan [20] - Operating cash flow was significantly reduced to 1.27 billion yuan from 4.11 billion yuan year-on-year, indicating a negative free cash flow of 341 million yuan [22][31] Group 2: Short Drama Market Dynamics - The short drama platform "Hongguo" has shown rapid growth, with a user base projected to surpass iQIYI, achieving a year-on-year growth rate of 179% and reaching 210 million monthly active users [3][6] - Hongguo's revenue-sharing model has proven lucrative, with monthly revenue surpassing 5 billion yuan, indicating strong monetization capabilities [6][11] - iQIYI's strategy to incorporate short dramas into its membership model has not effectively increased user engagement or revenue, as users prefer free access to content on platforms like Hongguo [27][29] Group 3: Competitive Landscape - The competitive landscape for short dramas is intensifying, with platforms like Douyin and Kuaishou rapidly expanding their offerings, making it difficult for iQIYI to maintain its market position [31][32][33] - Douyin's multiple short drama apps are capturing significant user attention, further marginalizing traditional long-video platforms like iQIYI [31][33] - The overall market for micro-short dramas is projected to grow significantly, with estimates reaching 634.3 billion yuan by 2025, indicating a lucrative but challenging environment for iQIYI [11][33]