China's Streaming Giant iQiyi Plans VR-Themed Park Based on Its Hit Shows

• The Chinese video-streaming service iQiyi announced on Thursday its intention to launch its inaugural theme park before the end of the year, featuring attractions inspired by personalities from their original series.
• The upcoming "iQiyi Land" is scheduled to open in Yangzhou City, located in Jiangsu Province, which is approximately two hours away from Shanghai via high-speed rail.
• Legoland is set to launch its inaugural Chinese resort in Shanghai this summer. Meanwhile, Warner Bros. Discovery recently disclosed plans for a "Harry Potter Studio Tour" in Shanghai, slated to open around 2027.

BEIJING – On Thursday, iQiyi, a prominent Chinese video streaming service, declared its intention to launch what will be their first comprehensive theme park in China, centered around personalities from their original series, slated for later this year.

The upcoming "iQiyi Land" is scheduled to debut in Yangzhou City, located in Jiangsu Province, approximately two hours away from Shanghai via high-speed rail. According to the firm, this entertainment complex will feature seven categories of attractions—ranging from immersive theaters and interactive movie sets to VR-based experiences—that primarily revolve around figures from iQiyi’s movies and TV series.

This marks the most recent corporation to wager that nearby customers will increase their spending on activities, even with sluggish retail figures.

Legoland is opening its first China resort This past summer in Shanghai, Warner Bros. Discovery revealed plans for a "Harry Potter Studio Tour," set to open in 2027 within the same city. Meanwhile, at the end of 2023, Chinese toy firm Pop Mart inaugurated a themed area called "Pop Land" in Beijing. This location quickly became the top draw in the bustling commercial zone of the capital, as indicated by ratings provided by Dianping.

IQiyi's proposed theme park expands on the company's recently gained popularity with virtual reality-themed experiences.

The company has developed technology that combines VR headsets with moving platforms — giving visitors the impression that they are walking, riding on boats or sitting in a flying carriage. That means a theme park-like experience can be compressed into a space as small as a square just 57 feet long.

Since iQiyi's first dedicated VR experience opened in Shanghai two years ago, the company has worked with business partners to open more than 40 locations in at least 20 Chinese cities. One VR experience based on iQiyi's "Strange Tales of the Tang Dynasty: To the West" gained more than 100,000 visitors in its first year of opening, according to the company.

Hang Zhang, the senior vice president at iQiyi, stated in a Chinese announcement that VR, gaming, and AI have facilitated the rise of "distributed" theme parks. These attractions are more compact, interactive, and capable of swiftly updating their content.

He mentioned that certain VR-based experiences will initially debut in iQiyi Land prior to their release at other locations.

IQiyi's shares finished over 3% higher in U.S. trading on Thursday and have climbed by 14% this year overall.

Post-Covid growth

China’s mainland theme park industry is projected to generate over 480 billion yuan ($67 billion) in revenue this year, attracting more than 500 million visitors, as reported by the International Association of Amusement Parks and Attractions. This represents a substantial increase compared to the 30.39 billion yuan earned at 86 key theme parks back when restrictions related to the COVID-19 pandemic were being lifted last year.

The association mentioned that parks are progressively adopting a blend of virtual reality to attract visitors, while utilizing AI tools for crowd management. Additionally, they noted that these parks are integrating international IP properties with local stories within China.

The organization stated on Wednesday that the leader of Disney Parks International would be giving a speech at their event. The Asia Expo will take place this summer in Shanghai.

Disney, which unveiled its Shanghai Disneyland in 2016, announced A 28% rise year-over-year in global parks and experiences Operating income for the period ending December 28 showed growth, unlike the 5% decrease experienced within the U.S.

Comcast, which saw the opening of Universal Studios Beijing in 2021, stated higher revenue At its international theme parks, they balanced out the reduced visitor numbers at their U.S. locations during the final quarter.

A tough environment

Tourism has been a rare bright spot in China's otherwise lackluster consumer market. The consumer price index, an indicator of domestic demand, rose by just 0.2% last year while the tourism component increased by 3.5% .

China's strategy to increase consumer spending for this year specifically requested for fostering the experience economy .IQiyi had previously collaborated with a local tourism authority to create a TV show. a drama series located in a distant region of China , drawing visitors.

Nevertheless, the rivalry in content continues to be intense. IQiyi saw their 2024 revenue decline by 8%, amounting to 29.23 billion yuan, which contrasts with the previous year’s 10% growth.

Theme park developments may encounter postponements as well.

A Legoland in China’s Sichuan province, located in the west of the country, was initially planned to launch by 2023 When reached out to operator Merlin Entertainments regarding the project, the company exclusively highlighted the upcoming summertime launch of Legoland in Shanghai this season.

Disclosure: Comcast owns NBCUniversal, which is the parent company of .

clarification: This narrative has been updated to include the accurate title of the iQiyi drama, "Strange Tales of the Tang Dynasty: To the West." An earlier version relied on a provided translation that turned out to be incorrect.