Tang Xing, chief technology officer of Iqiyi, revealed that the technical integration of Iqiyi and PPS has entered the final CDN and P2P integration and optimization stage, and it is expected to be completed this summer.
On the completion of the integration, the company's broadband costs will be lowered. In addition, Iqiyi will soon launch its own TV product, though no further detail was disclosed. Tang made the comments during a media communications meeting.
Iqiyi is the Internet video subsidiary of the Chinese search engine company Baidu, which acquired another video provider PPS for USD370 million in May 2013. So far, Iqiyi and PPS have realized interconnection of user account systems and advertising platforms. Tang said at present, the two parties are implementing integration of video editing platforms, which will be finished within this month. Moreover, their CDN and P2P integration and optimization will be completed this summer. Currently, the broadband costs of Iqiyi and PPS are about 40% of their industrial competitors. Once the integration is completed, the ratio will be lowered to 30%, said Tang.
Tang also revealed that Iqiyi will soon launch its TV product; however, he emphasized that the company will not make hardware and will still focus on contents and technologies. Iqiyi's Internet TV product strategy will follow its PC strategy, which is free content supported by advertising revenue. Tang said free-of-charge is the gene of the Internet, but video providers can gain profit via other charging methods.