China’s Netflix Wants AI To Break Its “Vicious Cycle”

The Dead Internet theory used to be a conspiracy — now it’s a business strategy. IQiyiIQ

, AKA “China’s Netflix,” just announced its biggest shakeup since founding, with plans to let AI generate most of its films and shows within five years. CEO Gong Yu calls the moment “once in a decade,” and he’s restructuring the whole business around it.

• Powered by AlibabaBABA
  and ByteDance, IQiyi’s AI filmmaking suite covers the full production process — with a fully AI-generated feature film reportedly slated for this summer.
• The move comes as short-form rivals steal eyeballs, sendingIQ
  ’s Q1 revenue down ~13% — so it’s also launching a Sora-inspired platform that hands AI content creators a 20% cut of user fees.

Another Hollywood ending? With rising production costs, fewer films, and fewer eyeballs, Gong thinks AI is the only way out of China’s “vicious cycle.” That logic isn’t uniquely Chinese, as NetflixNFLX

, AmazonAMZN

, and Hollywood are quietly running the same playbook, debating AI’s role amid layoffs and strikes. The difference is that IQiyi is just saying the quiet part out loud, but its AI film’s success will be the first real indicator of what’s to come.