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EMERGING

COMPANIES SUMMIT

GONG Yu

CEO IQIYI.COM, INC.

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2.6% 4.1% 6.6% 9.5% 12.0%

0%

20%

40%

60%

80%

100%

2009A 2010A 2011E 2012E 2013E

31.0%

6.7%

44.1%

1.8%

TV Online video

Time shareRevenue share

Online Video Advertising Taking Share from Traditional TV

67.675.9

85.295.4

106.4

2009A 2010A 2011E 2012E 2013E

1.83.1

5.6

9.1

12.8

2009A 2010A 2011E 2012E 2013E

TV Ads: Huge Market with Slower Growth

Online Video Revenue as a % of TV Ad Revenue Online Video Advertising

Source: iResearch, DCCI, Zenithoptimedia, Synovate, CNNIC

Online Video Advertisement Market Size

(RMB bn)

Source: iResearch, June 2011Source: DCCI

Source: iResearch, DCCI

(RMB bn)

% of Time Spent vs. % of Ad Spend in China (2010)

(RMB bn)

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Professionally produced short

video （PPC）

Professionally produced long

video（PPC）

User generated content

（UGC）

Self-produced content

（PPC）

Performances of online video contents

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Entertainment channelSelf-produced high-quality entertainment News

Movie channelOver 2000 movie tiles，covering 98% of new

releases in theatres

TV drama channelOver 30,000 episodes, simultaneous airing with

TV for new dramas

Documentaries channelHigh-quality documentaries globally

Variety show channelOver 20,000 episodes of variety shows,

including but not limited to Fei Cheng Wu

Rao (You are the one), Happy Boys

Music channel

10,000 licensed MVs from

major labels

Animation channelCovers over 90% of domestic animation. Top

searched titles on Baidu

Content strategy：Top online TV/movie portal with latest, most comprehensive and highest-quality content

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ITWe Are Laying the Foundation for Sustainable Growth

APPs

CDN P2P

Content

Experience

Infrastructure

Content purchase

Content creation

User experience

Value-added service

Transmission: CDN + P2P

Terminals: Browser + APPs

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ITStrong Infrastructure and Distribution Platforms

IQIYI has rapidly expanded beyond the PC to provide superior user experience

across multiple connected media devices and formats

AppleiPad

SamsungGalaxy Tab

LenovoLepadPC

TV

AppleiPhone

Support for Multiple PlatformsStrong Infrastructure Foundation

Supports more than 250 different types of mobile phones

and tablets through cooperation with ~50 manufacturers

Has 10mm installed users with 1mm daily active users on

devices (iPad alone has 2mm installed and 200k daily

active users)

Covers ~30 operators in 30 provinces with ~120 data

centers, utilizing a capacity more than 1,500G (~5% of

China’s gross internet traffic)

Also offers P2P technology, reducing bandwidth cost as

well as improving a small part of the user experience

IDCs (Internet Data Centers)

Core nodes of CDN

Central nodes of CDN