Cuộc họp công bố kết quả kinh doanh Quý 2/2026 của iQIYI (IQ): Lỗ từ hoạt động kinh doanh thu hẹp 80%

Điểm tin chính

• Tổng doanh thu đạt 6,3 tỷ Nhân dân tệ, tăng 1% so với quý trước, nhờ doanh thu phân phối nội dung tăng 90% lên 681,5 triệu Nhân dân tệ.
• Lỗ hoạt động phi GAAP thu hẹp 80% so với quý trước, từ 148,6 triệu Nhân dân tệ xuống 30,3 triệu Nhân dân tệ, giúp iQIYI tiến gần đến điểm hòa vốn.
• Doanh thu dịch vụ hội viên giảm 4% so với quý trước xuống 4,0 tỷ Nhân dân tệ, chủ yếu do yếu tố mùa vụ. Doanh thu quảng cáo trực tuyến đạt 1,2 tỷ Nhân dân tệ.
• Dòng tiền thuần từ hoạt động kinh doanh tăng lên 339,6 triệu Nhân dân tệ từ mức 186,4 triệu Nhân dân tệ trong quý 1. Tiền, tiền gửi bị hạn chế và các khoản đầu tư ngắn hạn đạt tổng cộng 4,1 tỷ Nhân dân tệ vào cuối quý.
• Doanh thu hội viên tại thị trường quốc tế tăng 40% so với cùng kỳ năm ngoái. Trong đó, Brazil và Mexico tăng lần lượt hơn 215% và 150%, còn doanh thu hội viên micro-drama tại thị trường quốc tế tăng hơn 300%.
• Ban lãnh đạo đang ưu tiên phân quyền và ứng dụng AI nhằm mở rộng nguồn cung nội dung, rút ngắn chu kỳ sản xuất và giảm chi phí đơn vị, đồng thời vẫn duy trì chất lượng nội dung cao cấp.

Dữ liệu tài chính chính

Tính đến ngày 30 tháng 6, iQIYI cũng ghi nhận 636,6 triệu USD tiền gốc phải thu từ PAG trong khoản mục chi phí trả trước và tài sản khác. Theo chương trình mua lại cổ phiếu trị giá 100 triệu USD, công ty đã mua lại khoảng 21,6 triệu ADS với giá 24,1 triệu USD vào cuối quý.

Kết quả kinh doanh và hoạt động

Nội dung và hội viên

Theo dữ liệu từ bên thứ ba do ban lãnh đạo dẫn chiếu, iQIYI duy trì thị phần lớn nhất trong mảng phim truyền hình dài tập, phim điện ảnh và nội dung trẻ em. Thị phần phim drama ngắn của công ty đã tăng từ 25% vào tháng 3 lên 50% vào tháng 6, lần đầu tiên vươn lên vị trí dẫn đầu.

Ban lãnh đạo cho biết phim drama ngắn có thể giảm hơn 50% chi phí sản xuất trung bình mỗi phút so với phim drama dài tập và rút ngắn thời gian từ sản xuất đến phê duyệt từ 30% đến 50%.

Doanh thu hội viên giảm so với quý trước do yếu tố mùa vụ. Công ty đã nỗ lực cải thiện khả năng kiếm tiền thông qua các chương trình khuyến mãi mục tiêu và các tùy chọn xem cao cấp. Các gói xem trước (Express packages) được triển khai trên 16 bộ phim truyền hình đã thúc đẩy tổng số lượt tham gia tăng gần 80%.

AI và hệ sinh thái nhà sáng tạo

AI và phân quyền là hai yếu tố trọng tâm trong quá trình chuyển đổi chiến lược của iQIYI. Công ty đang chuyển dịch từ một nền tảng truyền thông tập trung sang một hệ sinh thái nội dung lấy nhà sáng tạo và người dùng làm trung tâm.

Số lượng nhà sáng tạo và lượt tải lên đã tăng sau các đợt nâng cấp trung tâm nhà sáng tạo của iQIYI. Tùy thuộc vào danh mục nội dung, lượt tải lên trung bình hằng ngày trong quý 2 đã tăng từ 30% đến 500% so với quý 1.

Ban lãnh đạo cho biết AIGC có thể giảm chi phí và thời gian sản xuất từ 70% đến 90% đối với các định dạng nội dung phù hợp. Tính từ đầu năm đến nay, công ty đã phát hành 16 phim drama ngắn do AI tạo ra theo thỏa thuận chia sẻ doanh thu. Trong tháng 6, AIGC chiếm hơn 50% lượng người dùng truy cập độc nhất (unique visitors) xem micro-drama trên nền tảng.

Chiến lược áp dụng thay đổi tùy thuộc vào từng định dạng. Ban lãnh đạo kỳ vọng AIGC sẽ trở thành nguồn cung chính cho mảng micro-drama và phim hoạt hình ngắn (micro-animation). AI cũng sẽ được sử dụng rộng rãi hơn trong phim hoạt hình, chương trình trẻ em, phim drama ngắn và phim điện ảnh chiếu mạng. Đối với các phim drama dài tập cao cấp và phim điện ảnh chiếu rạp, iQIYI sẽ duy trì phương pháp quay người thật (live-action), ưu tiên chất lượng hàng đầu, đồng thời sử dụng AI để hỗ trợ sản xuất và giảm chi phí.

Quảng cáo

Doanh thu quảng cáo thương hiệu gắn liền với các bộ phim truyền hình tăng trưởng ở mức hai chữ số so với cùng kỳ năm ngoái. Quảng cáo trong ngành chăm sóc cá nhân và chăm sóc sức khỏe cũng tăng trưởng ở mức hai chữ số.

Quảng cáo hiệu suất đã tăng trưởng trở lại so với cùng kỳ năm ngoái. Doanh thu từ các nhà quảng cáo vừa và nhỏ tăng trưởng mạnh mẽ, trong đó ứng dụng AI, bán lẻ giao ngay và thương mại điện tử là một trong những nhóm nhà quảng cáo tăng trưởng nhanh hơn. Công ty đang sử dụng các mô hình lớn được nâng cấp để cải thiện độ chính xác trong việc nhắm mục tiêu.

Hoạt động quốc tế

Doanh thu hội viên quốc tế tăng 40% so với cùng kỳ năm ngoái, trong khi mảng kinh doanh này vẫn duy trì có lãi trên cơ sở kế toán quản trị. Brazil và Mexico đạt mức tăng trưởng lần lượt hơn 215% và 150%. Doanh thu hội viên tại các thị trường nói tiếng Ả Rập tăng 85%.

Micro-drama là mảng đóng góp lớn thứ hai vào doanh thu hội viên quốc tế, chỉ sau phim drama dài tập. Doanh thu từ mảng này đã tăng hơn 300% so với cùng kỳ năm ngoái.

Công ty cũng ra mắt các tác phẩm quốc tế do AI tạo ra bằng nhiều ngôn ngữ. Ban lãnh đạo cho biết một số tác phẩm gốc đã thu hồi được chi phí ngay trong quý. iQIYI dự định mở rộng quy mô nguồn cung thông qua sản xuất nội bộ và hợp tác đối tác bên ngoài, đồng thời tận dụng các mối quan hệ phân phối, thanh toán và nền tảng địa phương để mở rộng lượng hội viên.

Rủi ro và các điểm cần theo dõi

• Doanh thu hội viên vẫn chịu ảnh hưởng bởi tính mùa vụ của nội dung và thói quen của người đăng ký, thể hiện qua mức giảm 4% so với quý trước trong quý 2.
• Chi phí nội dung tăng 2% so với quý trước ngay cả khi chi phí hoạt động giảm, khiến hiệu quả sản xuất liên quan đến AI đóng vai trò quan trọng trong việc cải thiện hơn nữa khả năng sinh lời.
• Ban lãnh đạo thừa nhận rằng các phim drama dài tập cao cấp và phim điện ảnh chiếu rạp áp dụng AIGC chậm hơn do sự phức tạp hơn về mặt cảm xúc, nghệ thuật và sản xuất.
• Sở thích nội dung quốc tế và cấu trúc hợp tác khác nhau tùy theo từng thị trường. Ban lãnh đạo cho biết việc mở rộng sẽ tiếp tục gắn liền với hiệu quả kinh tế trên mỗi đơn vị, chất lượng doanh thu và khả năng tạo ra lợi nhuận đã được chứng minh.
• Các tuyên bố hướng tới tương lai vẫn chịu sự tác động của các rủi ro và yếu tố không chắc chắn được mô tả trong các báo cáo nộp cho SEC của iQIYI.

Điểm nhấn phần Hỏi & Đáp với chuyên gia phân tích

AI và sự phân quyền sẽ ảnh hưởng thế nào đến mô hình kinh doanh của iQIYI?
Ban lãnh đạo cho biết hai chiến lược này sẽ củng cố lẫn nhau: rào cản sản xuất thấp hơn có thể làm tăng sự tham gia của nhà sáng tạo và nguồn cung nội dung, trong khi một hệ sinh thái phân quyền rộng lớn hơn có thể cải thiện mức độ tương tác của người dùng. Theo thời gian, công ty kỳ vọng các sáng kiến này sẽ cải thiện chi phí nội dung, chất lượng doanh thu, khả năng sinh lời và dòng tiền.

Việc ứng dụng AIGC sẽ diễn ra nhanh nhất ở đâu?
Ban lãnh đạo xác định micro-drama và hoạt hình ngắn (micro-animation) là các định dạng phù hợp nhất với AI ngay từ bản chất. Phim hoạt hình, nội dung trẻ em, phim drama ngắn và phim điện ảnh chiếu mạng cũng được kỳ vọng sẽ mở rộng quy mô nhanh hơn so với phim drama dài tập cao cấp và phim điện ảnh chiếu rạp.

iQIYI mang lại điều gì cho các nhà sáng tạo?
Công ty đã nhấn mạnh khả năng tiếp cận khán giả, năng lực sản xuất công nghiệp hóa, dữ liệu người xem, tài nguyên sở hữu trí tuệ, hạ tầng phân phối và các kênh kiếm tiền. Hệ thống hỗ trợ nhà sáng tạo của công ty bao gồm các công cụ sản xuất, các trung tâm sáng tạo thực tế, đào tạo, hỗ trợ tài chính và dịch vụ chăm sóc khách hàng.

Mô hình hoạt động ở nước ngoài có thể được nhân rộng không?
Ban lãnh đạo mô tả Thái Lan là một không gian thử nghiệm thành công cho việc kết hợp phim drama Trung Quốc, nội dung địa phương hóa, hoạt động tiếp thị bền vững và các mối quan hệ đối tác địa phương. Công ty có kế hoạch tái sử dụng các năng lực đó tại các thị trường khác, đồng thời điều chỉnh việc triển khai cho phù hợp với khán giả và các kênh phân phối địa phương.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Thank you for standing by, and welcome to the iQIYI Second Quarter 2026 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Ms. Chang You, IR Director of the company. Please go ahead.

Chang Yu

Thank you, operator. Hello, everyone, and thank you for joining iQIYI's Second Quarter 2026 Earnings Conference Call. The company's results were released earlier today and are available on the company's Investor Relations website at ir.iqiyi.com.

On the call today are Mr. Yu Gong, our Founder, Director and CEO; Mr. Ying Zeng, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Youqiao Duan, Senior Vice President of our Membership Business, Mr. Xianghua Yang, Senior Vice President of International and Online Games Business; and Mr. Gang Wu, Senior Vice President of Brand Advertising business. Mr. Gong will give a brief overview of the company's operations and highlights, followed by Ying, who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session.

Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

I will now pass on to Mr. Gong. Please go ahead.

Tim Yu

Hello, everybody. In the second quarter, we continue to reinforce our core business, high-quality, diversified content powered by our industry-leading performance. According to in-license data, we maintained the #1 market share in each of the long-form drama, field and children's content categories. And for short-form dramas, we made a major pretty soon reaching #1 market share for the first time Financial performance also improved quarter-over-quarter. Total revenue -- total revenues grew sequentially and our non-GAAP operating loss narrowed substantially approaching breakeven. We are fully amounting our strategy -- strategic and transformation. First, we are shooting from a centralized media to decentralized, creator and user-centric social media ecosystem. AI can remittance and barrier content ratio turning what was once -- niche professional activity into a mass capability and triggering unparalleled search incontinent supply. Because transitional centralized models cannot accommodate the scale and diversity. We are upgrading our content acquisition and distribute mechanism to efficiently connect creators and audiences.

Second, we are taking an OEM approach on AI to revolutionize both live action pressure and pure AIGC. Our guiding principle is clear, maximizing cost efficiency without compromising quality.

Together, these each other like flywheel, AI rapid growth in content supply, which help us move faster to more decentralized model as we decentralize more creators can participate, users get more engaged and our platform becomes even stronger. In Q2, our strategy moved from plans to results over time. They will structurally improve on content costs, revenue quality, profit and cash flow.

Let me walk you through the progress. Through decentralization, we are improving our platform and accelerating the creator ecosystem in April, which reflected our core greater half the IQ IT IG creator center early are promising the number of creators and uploads are all trending higher. Content is short production cycle, lower production scale and a good fit for AIT and creation have seen especially strong growth for various types of content. The delayed average number of uploaded works in the second quarter increased by 30% to 500% compared to the first quarter, into daily fields for microtumor and micro animations were up by double digits compared with March.

Short-form dramas and animation are also gaining tranship. Looking ahead, more long-form video categories we are doing a decentralized content ecosystem as we preserve. It's premium content advantage with our burden on content slate by adopting lighter, more flexible content agitation models.

On content production, AI is substantially optimizing production efficiency and cost structure. First, in that action, AI is streaming in the Antero workflow, for example, we leverage AI in our shop to prime season 2 to achieve a [ 104 ] Lipin rough cut efficiency compared to traditional measures.

Second, for content test, well suited to AIGC. AIGC production can reduce production costs and time lines by 70% to 90% compared with transitional while pushing past the physical limits of live action shorting. Naturally, AI adoption is faster in CG having formats, we have launched multiple AI-generated Internet future fill. A major milestone was July Premier of the industry's first ITC Internet feature film to launch with Internet drama and field distribution assets.

This marks the official shift of long-form AIGC from technical testing to Large-scale production, in addition, year-to-date, we have launched 16 AI-generated short-from under a revenue-sharing model with traded as a top performing title in the second half of the year, we have launched a diversified list of AIGC title, including multiple IT invested films with an even broader pipeline across expanded categories next year.

Currently, we have multiple AI generated short-form drama in development. is our seg-grade production platform for creators as less on optimized third-party and in-house models plus longstanding expertise in professional content by replacing costly steps with lower compute and cost at lower spares and speed up professional content production. Our strategy is planned, internally nonrap development and production costs, external other crop express new revenue streams and gradually converge on professional production capabilities into incremental revenue.

is general AI output is change the key parts of long-form production, a script writing shop design workflows digital asset editing and doubling into platform features. It delivers an end-to-end flow in next talent with content assets and make progress repeatable and reusable is involving from our tools into comprehensive greater ecosystem. It links content demand is greater and enables them to realize commercial returns to flexible business model. These activities are flywheel commercial returns encourage more content supply, expanded supply fortifies the ecosystem, a stronger ecosystem scale both peers and works, poring creation platform for iQIYI's decentralized content ecosystem.

We believe this advantage will improve content production efficiency, lower unit costs and increase for users and revenue, as we roll them out across all operations and scale, we expected their contributions to profit and cash flow to stably material line.

Now let's move on to the detailed performance in Q2. Let's start with content. Our premium company is well recognized by users and the industry as the mean work this room, one of China's top TV owners, by Milano, IT titles and their accretive teams -- 14 of 23 awards, including 10 of 11 in the drama category, well ahead of cars.

In Q2, our content performed well across formats in long-form dramas, we continue to focus on female-centric stories with working among this year's top two titles by ad revenue. We also reinforced our lead in suspension general innovation. The suspense [indiscernible] or surpassed the 10,000 popularity score and a strong membership sign-ups.

We will in [indiscernible] juncture from our IT suspense seller earned strong reveals our original title archiving mystery. exceeded 9,300 populating index score under the nonexclusive the effort of topped 8,500. In-place supported short-form dramas typically 15 to 25 minutes per source with flat door and so costs. We delivered exciting early results for enlighten data our market share doubled from 25% in March to 50% in June taking #1 for the first time. The strong performance was supported by all original deferment 10th anniversary which reached a per-day market share of 60% short-form titles can offer structural advantages of our long-form dramas, potentially reducing average per minute cost by over 50% and shortening production to approval time lines by 30% to 50%.

In macro dramas, we released a premium live action titles like all of our sector currently forming for you and the all responded well with AIGC scale quickly under revenue sharing model accounting for over 50% of our macro and unique visitors in June while AI native micro animations expanded with strong sequential growth in and time.

In fields, we maintained diversified slate of different offices. Originals like the counter fit, we talked on the received positive feedback. We are licensed the article hit, [indiscernible] breadth of the Garden ran Zoomtopia 2, we are also well received on our platform. In already shows, we launched 7 originals in Q2 with our flagship from transit delivering a sustained value has will help across popular index score of 9 solid, reaching a new front for 10 years evergreen IP, the wrap of China 2026 also stood out surpassing a popularity index score of 8,800.

In animation, we further solidified our original offers, the long branding against the long -- with Premal in April, topped our animation popularity index chart and broad notable of platform users back to IT together with growth ruler, a -- we now have two long-running angles to get users in digital year round.

In student's content, we reinforced our leadership with the return of our original IP vehicle and the local life adoption of the BBC Classic

Next, let me show our pipeline for the second half of the year. Our summer, long-form dramas features, a diversified lineup, which includes multiple female-oriented titles like road to success [indiscernible] Junior golfers continue on in of the blade in and in vibrations complemented by the military theme linked from Warren into fontina and the major realistic drama forging, Justice For the remainder of the year, we will printer great long March [indiscernible] no return in sugar.

As for short-form drama, our accounting releases include that of wing term. In Duncan, the 5 of fecal the sixth group of fatal drug and the upgrade nobody to in films of pipeline features, original cell article films, including winter and summer. Yellowtail, not go to the child to monitor and provision on this work in the second half of the year. On the investments front, our pipeline includes a nation part, chosen and the fuels this summer. With I know who you are, but there you and managing to an crossing do late for the later half of the year.

For Internet feature films, which are eliminated to a maximum of 3 chapters, each at least a 6 our pipeline includes multiple ITC titles based on the classic IP, the environment in Humber first 2 chapters, butter flight drain and the ring of -- to launch this summer. Additionally, audiences can also drove a strong of live action handles, including motor game, and speed and be this summer.

Shifting to a shore. Deepening orders engagement with established IPs, including the wrap-fee 2026, the team of season siting and Horitthis summer followed by the Bloomington in Europe and enter together to reduction in the second half.

For amination this year, could be IT strong gift animation summer today. The line of feature a good data to an toleration rise by demand primarily more golden cost, Hietanen, Changhong [indiscernible] the AI panels, the legend of King cancer Hakan the Legend of King...

For children's content, our summer slate features a new season of the popular present Board and the Big Wolf. Xianyang as well as original AIGC animation like looking ahead at the second half of the year, we will roll out the original AIGC animation and come and bid for test travel to our control tuition.

Now turning to membership business. Revenue declined sequentially due to seasonal -- seasonality. We are strengthening the business with more refined operation. For example, targeted discounts for students and future year-over-year increase of over 60% in quarter and subscribers we in this cold -- we also continued to enhance membership value with experience package. In Q2, we launched the express package across 16 dramas driving nearly 80% and increase in total participation we are expanding drone membership is frequently purchased top-tier brands popular among young users to support membership world and retention.

Next, moving on to advertising business for our brand as revenue from drama targeted and delivered double-digit year-over-year growth and sector building, personnel - and health care recorded double-digit year-over-year growth. We also depend our use of AI in operations and now support customized rating. For performance revenue returned to year-over-year growth, we continue to optimize advertiser mix.

Revenue from small and midsized advertisers delivered strong year-over-year growth and sector-wise revenue from advertisers in AI application, instant retail. Retial and e-commerce recorded a strong year-over-year growth. We further strengthened results with -- upgrading our price large models, improving targeting precision and driving revenue.

Moving on to our business performance in regions outside of Milan China. In Q2, this business sustained rapid growth, membership revenue grew 40% year-over-year. Pop gifts and Spanish-speaking regions demonstrated robust growth, notably membership revenue from Brazil and Mexico search by over at 215% and 150% year-over-year, respectively, arb speaking markets also show strong financial with membership revenue increasing 85%.

The global influence of Sea drama continues to expand in membership revenue from Cremers grew over 40% year-over-year. As to out -- as to our hit was faced to [indiscernible] at the top our international platform, rankings across 14 regions in its first week and stay in the top 10 of the Sedramers chat for 10 consecutive weeks.

On the local production front, we are accelerating our pace, our first original Indonesian drama, the other system gain strong traction for global trend and became the #1 local Internet drama in Indonesia in the first half of 2026.

My Programmers were another major highlights, serving as the second largest membership revenue contributor following long-form dramas. In Q2, membership revenue from this category grew over 300% year-over-year. This momentum was partly fueled by stronger original production. Notably, originals rose to 3 of the top 10 contributors to membership revenue.

AITC was another key driver of our overseas microgram expansion. In Q2, we launched AI-generated titles in multiple language including English, Thai and Our original titles delivered exception of efficiency, recovering production costs within the same quarter and demonstrating the power feed potential. We are scaling supply soon both originals and external partnerships.

In May, we released offers original EI generated crore overseas, which quickly ranked in the top 3 for macro drama revenue on our international platform. The title was produced by another which caused us to template full long laying a strong foundation for scale production in parallel. We are proactively affording external partnerships to connect overseas script production and tool ecosystem, including andro unlocking a current city and scaling AIDC supply.

Beyond content, we are driving growth with strong membership, we have partnered with Vision Plus in Indonesia and a well launched joint membership with fill in more markets in the second half. We are excited about the future potential of our overseas business.

With that, I will hand it to over to Tian Ying, our new CFO, to walk you on the financials.

Tian Ying

Okay. Thank you, Mr. Gong, and hello, everyone. Let me walk you through our key financial results for Q2. Total revenues were RMB 6.3 billion, up 1% sequentially. Membership services revenue was RMB 4.0 billion, down 4% sequentially, primarily due to seasonality. Online advertising revenue was RMB 1.2 billion, sequentially. Content distribution revenue was RMB 681.5 million, up 90% sequentially, driven by the increase in content distribution revenue related to the drama series. Other revenues were RMB 344.9 million, down 19% sequential.

Moving on to cost and operation, operating expenses, content cost was RMB 3.8 billion, up 2% sequentially. Total operating expenses were RMB 1.1 billion, down 6% sequentially, reflecting this in market spending. Non-GAAP operating loss narrowed by 80% sequentially from RMB 148.6 million in Q1 to RMB 30.3 million, bring us close to breakeven.

Turning to cash flow. Net cash provided by operating activities increased to RMB 339.6 million, from RMB 186.4 million in Q1. As of the end of Q2, we had cash, cash equivalents restricted cash and short-term investments of RMB 4.1 billion. Separately, as of the quarter end, we had a long principle of USD 636.6 million receivable from PAG, included in prepayments and other assets on the consolidated balance sheet.

We remain focused on creating long-term shareholder value. In March 2026, we announced a share repurchase program of up to USD 100 million effective through September 2027. As of June 30, we had repurchased approximately 21.6 million ADS for aggregated cost of USD 24.1 million. For further details, please refer to today's earnings on our Investor Relations website.

With that, we are ready to take questions. Operator, please proceed.

Operator

[Operator Instructions] Your first question comes from Xueqing Zhang with CICC.

Phần hỏi đáp

Xueqing Zhang

[Interpreted] I would like to ask with large and the market involved rapidly by management, the actual business model in the future and is the company's key strategic and operational priorities going forward.

Tim Yu

[Foreign Language]

Chang Yu

[Interpreted] Thank you. The CEO takes this question. So he says, we see IT of the benefactory of AI now and also in the long term. So to capture these opportunities, we are making some strategic transformation for our business, mainly focused on two main pillars. Decentralization, which meaning transforming from the media-centric platform to a decentralized content ecosystem and also all in AI. So these two pillars the lease will mutually reinforce each other and driving a flywheel effect across the number of creators the volume of content, the user base and potentially on revenue performance.

Okay. Premium content still remains the core of our business. We believe AI will significantly lower production cost for premium content, short-term production cycles and potentially enable production and visual effects that were previously difficult to achieve their life action.

On decentralization, we're mostly focusing on our IQ ID, which is the ICE creator center, and we have seen some positive initial progress, such as the number of creators, the content upload numbers are trending well. And we're seeing AI adoption is progressing across our core content categories and with initial breakthroughs achieved, for example, for the projects we both in production and also launched. And in the future, we expect a greater scale of content to be released next year.

Over the long term, we believe these two strategies, meaning the decentralization and all in AI, these two will structurally improve our content cost, revenue quality, profitability and cash flow. Thank you.

Operator

Your next question comes from Lincoln Kong with Goldman Sachs.

Lincoln Kong

[Foreign Language] So my question is about IG's overall AIGC strategy and how is our plan in terms of each content categories?

Chang Yu

Thanks, Lincoln. We'll invite our Chief Content Officer, Mr. Xiaohui, to take this question. Please go ahead.

Xiaohui Wang

[Foreign Language]

Chang Yu

[Interpreted] First of all, we believe AI reduces the basic costs and barriers to production, but it doesn't lower the bar for creativity and judgment. We leverage AI to optimize the economics of content production, while we reinforcing our core mode, which is storytelling and aesthetic judgment, emotional expression and also digital language. Our goal is to advance on both fronts, premium content quality and scale content supply. Strategically, we'll prioritize core long-form video while accommodating microtrauma and micro animation. Now we use a revenue-sharing model to improve capital turnover.

We'll share our thoughts by category based on the pace of AI adoption at scale. First of all, for micro dramas, we're seeing rapid adoption with AIGC as the primary source of supply. We primarily use a revenue-sharing model and leverage algorithm recommendations and decentralized operations to deliver a diversified rapidly refreshed and skilled content supply.

For animation -- micro animation, we believe these are AI native content. So AITC will serve as the primary supply.

For animations and Truvis content, these have mature CG industrialization are a good fit in our view, and we are seeing rapid AI adoption. AI significantly improves efficiency and our pipeline is expanding. For next year, we will release more AIGC titles to serve niche audiences and broaden stable supply.

For short-form dramas and interface feature films, these are medium in production complexity and volume and compared to long-form content that these are bit in complexity and also installed as well. And we are actively adopting AI, focusing on garners like fantasy, supernatural and adventures to widen our garner Some panels have already launched and we will speed up the scale releases and balancing cost efficiency and content diversity. So far, we released -- we have released 16 AIGC short-form drama under a revenue-sharing model, along with several feature films.

For long-term dramas and theatrical films, we believe carries the highest emotional and artist value, but these are relatively slower to adopt AIGC scale. And for this content, we will focus on life action to quality first use AI to support our production and use AI to reduce cost. Thank you.

Operator

Your next question comes from Vicky Wei with Citi.

Yi Jing Wei

[Foreign Language] In the context of the AI era and the ongoing shift towards the centralization, how do you view ICE's core competitiveness? And what kind of value does ICE offer to content creators?

Tim Yu

Thank you. We will invite our CEO to take this question.

Tian Ying

[Foreign Language]

Chang Yu

[Interpreted] We believe in the AI era, video industry competition centers on end-to-end capabilities, which is from concept to commercialization. And there are quite a few essentials that are required for this. For example, the ability to bring together professional talent, generate compelling ideas, run industrialized production, have a comprehensive understanding of content review and compliance, deliver effective content distribution and drive diversified monetization. And these are the four modes TI have built over the past decade.

So our values to creators with there are three areas that we are targeting and also a sloping help them to be seen, generate income and gain recognition. First of all, have a major share of the video entertainment audiences. So the creators have greater capabilities or possibilities to be seen on the IT platform. And also IT have deep expertise in long-form video production, and we have established a very mature industrialized content production of mechanism.

And in addition, IT also have a map viewership data, a very rich IP and also licensing resources, and also a very strong ecosystem support.

We have built a 7-pillar creator support system on the iQIYI ID, which is the ICE creator Center; NadoPro, our professional production platform. A physical creative centers offline, training programs and IT Noto and AIG Venture Summit helping the creators with the fund support. And the Peter Kao and IT AI theater for benchmark productions and last but not least, a dedicated creator customer service.

On August 20 in Beijing, which is in today, we will host the IT creator conference featuring in-depth discussions on content ecosystem development frontier on AI opportunities and greater empowerment. Thank you.

Operator

Your next question comes from with Guangfa Securities.

Unknown Analyst

[Foreign Language] I want to know about the latest development in overseas business and how the operational experience or more major markets like parent can be replicated in other markets?

Chang Yu

Thank you. We'll invite Mr. Xianghua Yang to take this question. .

Xianghua Yang

[Foreign Language]

Chang Yu

[Interpreted] Our overseas business maintained rapid growth in Q2 with overall membership revenue grew 40% year-over-year, and we remain profitable on a managerial accounting basis, and Thailand is the market where we enter early and where our operating model is relatively mature. It still delivered solid growth year-over-year in Q2. and with steady top line growth and continued profitability improvement in the quarter as well. And in new markets, such as Brazil and Mexico, we see membership revenue increased 215% and 150% year-over-year, respectively.

We categorize our overseas markets into mature growth and potential markets, where mature markets will aim for stable profitability, growth markets focus on accelerated reading revenue with disciplined investments.

Thailand serves of our proving ground. What we have validated is a set of reusable operating capabilities, yes. So using C drama as the foundation and a sustained marketing to amplify influence of Chinese content and expanding a local supply content supply and tailoring the content has adapted to the local audiences.

We are also partnering with our local carriers, platforms and payment channels to scale the membership base. And we're also leveraging AI to improve the translation and distribution and also production efficiency.

Because the content preferences and collaboration channel structures deferred by market, we will replicate these underlying capabilities, while the local teams do make targeted adaptations, for example, applying Thailand's operating capabilities to other markets.

Our strategy is not to chase contract counts. We are guided by unit economics and operating contribution, and we will expand into new markets after validating revenue quality and profit-generating capabilities. Thank you.

Operator

There are no further phone questions at this time. I'll now hand back to the company for closing remarks.

Chang Yu

Thank you, everyone, for joining the call today. If you have further questions, do not have to take to contact us. Thank you, and see you next quarter.

Operator

That does conclude our conference for today. Thank you for participating. You may now disconnect.