(Yicai Global) Oct. 23 -- Chinese video streaming service iQiyi has launched Project Kangaroo, a brand assistance scheme that will foster the development of new program content, as China’s answer to Netflix remains committed to staying ahead of the pack.

The Kangaroo project will provide new brands with resources in intellectual property, celebrity access and internet traffic and help them develop in an interesting way to meet young people’s needs, said Chief Marketing Officer Wang Xiangjun at the firm’s annual iJoy Conference held in Shanghai yesterday.

“Online film and television content is becoming more diversified,” said Gong Yu, the firm’s founder and chief executive officer. “Users want to find content that they resonate with emotionally amidst a diversified content selection. The industry should produce content based on the specific preferences of different audience groups,” he added.

The capacity to produce original content is a great strength, as such shows cannot be copied by other platforms, an industry insider told Yicai Global.

iQiyi is already a leader in its field in this respect. The unit of internet giant Baidu has more than 200 original TV series, variety shows, movies, cartoons and sports lined up for release over the next two years, it announced at the conference.

The Beijing-based firm ranks top in drama feature films and variety shows, with a 40 percent and 38 percent market share respectively, according to market research firm Enlightent. It has more than 60 studios producing content and has launched a number of popular online TV shows, including Youth with You and The Bad Kids.

The boundary between online shows and offline activities is becoming increasingly blurred, promising more revenue for branded content. For example, The Rap of China, a hip-hop competition produced by iQiyi, is opening a rap-themed bar in Shanghai. Its music variety show The Big Band has also launched some music groups into the Chinese mainstream.

As audiences become more segmented and with the development of technologies such as fifth generation networks, blockchain, ULTRA HD, virtual reality and artificial intelligence, streaming platforms have had to change their business model, Gong said. The Direct-to-Consumer model is the way forward, he added.

Editor: Kim Taylor