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China’s Netflix Vows to End Losses After $7 Billion Selloff

  • Baidu-backed iQiyi posts first quarterly profit since US IPO
  • IQiyi has lost roughly $7 billion of its value since its debut
Bloomberg business news
WATCH: Chinese Netflix-style site iQIYI is now making profitability its top priority, according to Chief Executive Officer Gong Yu.Source: Bloomberg

China’s iQiyi Inc. is resisting the temptation to outspend rivals in the cut-throat world of video streaming, to stay in the black.

After burning through billions of dollars to win a larger slice of China’s streaming market, the country’s answer to Netflix Inc. is now making profitability its top priority. Chief Executive Officer Gong Yu believes his company can maintain a profit by pursuing top-notch content to retain paid viewers, while cutting back production and marketing costs on less popular shows.