iQIYI, the online video streaming service majority-owned by Baidu, recorded US$1.6 billion (RMB 11 billion) in total revenue in 2016, an 113% increase from the previous year, according to Baidu 2016 annual report.
A majority of the total revenue was from advertising; an increasing portion was from premium subscriptions and sub-licensing of licensed contents.
Content costs, the biggest contributor to the increase in total costs and expenses, increased 122% and 136% in 2016 and 2015, respectively.
Baidu acquired a controlling stake in iQIYI in 2012 and later merged it with video service PPS which was acquired by the former in 2013. iQIYI’s major competitors are Youku-Tudou, acquired by Alibaba Group in late 2015, and Tencent Video.
iQIYI issued US$1.53 billion convertible notes in January 2017, among which US$300 million was purchased by Baidu.