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  "documentTitle": "iQIYI, Inc. (IQ)",
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  "presentationDate": "2020-04-07 00:00:00",
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  "notes": "The slide provides empirical evidence for partnership-based membership acquisition, supporting a broader argument about potential revenue inflation.",
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      "text": "Through swaps of advertising purchases, other services and commissions for membership revenues with related parties and other partners, IQ can easily inflate membership revenues while simultaneously providing a channel to burn off fake cash.",
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      "text": "membership with JD. Additionally, our survey results found another approximately 10% of respondents with VIP status indicated they obtained their membership through another dual membership program. Combined, the dual membership programs for IQ VIPs in Beijing, Shanghai and Guangzhou totaled approximately 31.9%.",
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      "text": "Our surveys indicate that after JD, the most common partnerships were with financial institutions offering credit cards and mobile phone network providers:",
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      "text": "Through swaps of advertising purchases, other services and commissions for membership revenues with related parties and other partners, IQ can easily inflate membership revenues while simultaneously providing a channel to burn off fake cash. IQ’s partnership with Xiaomi is an example of how convoluted the economics of these partnerships can be.",
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      "kind": "paragraph",
      "text": "In IQ’s earnings calls, management has disclosed a few specific partnerships, such as JD.com, Ctrip and Xiaomi, as well as certain other categories of partners (such as financial institutions and mobile network companies), but no information on the total number of these partnerships or their economics. However, details on the “2 for 1” offers can easily be found online. In the Spring of 2019, JD put out a special “3 for 1” deal: JD Plus, IQ and Zhihu for RMB 149/year.",
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      "text": "Xiaomi was reported as a related party up to the end of 2017 and details of the IQ-Xiaomi transactions were presented in IQ’s prospectus. Although Xiaomi has continued to disclose IQ as",
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      "text": "Footnotes 24-28 detailing survey methodology and external links.",
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      "text": "iQIYI VIP Membership Partnerships - Survey Results table",
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