iQiyi announced that it will fully implement the "revenue split" model from February 1, 2026,...

iQiyi's decision to fully transition to a "revenue split" model for creators by February 2026 represents a fundamental and high-stakes strategic pivot from its established commission-based system. This move is not merely a transactional change but a deliberate restructuring of its core incentive architecture, aimed squarely at addressing chronic platform challenges and securing long-term competitiveness in China's saturated streaming market. The model, which will see creators compensated based on a share of the revenue generated by their content's performance—likely factoring in metrics like watch time, engagement, and subscriber retention—shifts financial risk and reward more directly onto the creator community. By doing so, iQiyi is explicitly betting that aligning creator earnings directly with content popularity and viewer loyalty will catalyze a higher quality, more sustainable, and more platform-loyal content ecosystem, moving away from a volume-driven paradigm where creator payouts were more opaque and potentially disconnected from actual viewer value.

The primary mechanism driving this shift is the re-alignment of economic incentives to solve for both content quality and cost structure. Under a traditional commission or flat-fee model, platforms bear the upfront cost and risk, which can lead to budgetary pressures and a focus on quantity or star-driven projects with guaranteed but expensive returns. The revenue-split model, conversely, makes creator income contingent on the content's commercial success, theoretically incentivizing them to produce more engaging, audience-centric work while allowing iQiyi to convert a significant portion of its content costs from fixed to variable. This directly targets iQiyi's historical struggles with profitability, as it transforms the content budget into a function of platform revenue, thereby improving margin predictability. Furthermore, it serves as a powerful filter for creator commitment, likely attracting and retaining professionals confident in their ability to cultivate an audience, while potentially discouraging casual or lower-quality output.

The implications for the competitive landscape and the creator economy are profound. iQiyi is effectively attempting to import and adapt a model proven in Western platforms like YouTube, but within the distinct constraints and dynamics of China's regulated media environment. Success would pressure rivals like Tencent Video and Youku to follow suit, potentially triggering an industry-wide realignment of creator contracts that could accelerate professionalization and consolidation within China's independent production sector. For creators, the model introduces greater upside potential but also substantial volatility and business risk, necessitating a more entrepreneurial approach to audience analytics, marketing, and content iteration. A critical uncertainty is how the revenue formula will be structured and audited; perceived fairness and transparency will be paramount to prevent creator defection. Additionally, the long transition period until 2026 suggests iQiyi anticipates significant friction and requires time to renegotiate thousands of contracts, refine its analytics and payment infrastructure, and manage the potential short-term exodus of creators reliant on guaranteed fees.

Ultimately, this strategic gamble's success hinges on iQiyi's ability to foster a virtuous cycle: a transparent and attractive revenue share must draw top-tier creators, whose premium content then drives higher user engagement, subscription retention, and advertising yields, which in turn funds larger creator payouts. The risk is breaking the cycle before it starts—if initial terms are deemed unfavorable or payout volatility is too high, a loss of critical creative talent could degrade the content library, triggering user churn. The move also reflects a broader industry acknowledgment that sustainable growth in the post-burn-rate era requires deeper, more efficient symbiosis between platform and creator, making iQiyi's execution a case study that will define the next phase of Chinese streaming video economics.