JD and iQiyi Joint Membership Program Attracts 1 Million Users in First Week
"This will be a long-term partnership," said Yu Gong, the founder and chief executive officer of iQiyi.
Shares of iQiyi Inc. (Nasdaq: IQ) jumped more than 11 percent today after it announced that in the one week since the launch of its joint membership program with China's largest online retailer JD.com, over one million users from both sides have signed up.
"We are thrilled to see consumers rushing to take advantage of the many benefits of our joint membership package with JD," said Xianghua Yang, senior vice president of iQiyi. "As Chinese consumers become more willing to pay for premium online services – whether in entertainment or retail – we are confident that subscription offerings that offer outstanding value will continue to increase in popularity."
Earlier last week, iQiyi and JD (Nasdaq: JD) announced an exclusive strategic partnership to link their membership programs. Members who purchase one-year memberships for either iQiyi or JD.com will be able to enjoy the service and benefits of both platforms.
IQiyi's VIP paid membership program, similar to Netflix' membership program, includes early access to dramatic series aired exclusively on iQiyi platform, access to over 10,000 films as well as popular foreign films. JD's paid program, similar to Amazon Prime, provides free delivery service, exclusive customer service, special discounts for selected products, and other exclusive benefits.
"This will be a long-term partnership," said Yu Gong, the founder and chief executive officer of iQiyi. He told CapitalWatch that this idea came from Amazon Prime, which provides free delivery and online video service, and he hopes that "many more new members will join" its paid service in the near future.
IQiyi's subscription service business has developed rapidly over the last two years with 60.1 million subscribing members as of Feb. 28, 2018, the company said.
Now, with the help of joint membership with JD, the number has climbed to more than 61 million members and Wall Street responds favorably. iQiyi' stock jumped more than 11 percent to close at $18.62 per share in New York today, up $1.90.