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Iqiyi is a leading streaming video-on-demand company in China that generates revenue mostly through a subscription basis. The platform also provides user-generated content to nonpaying users, monetized through ads. The company self-produces much of the subscription content and also generates revenue through content distribution, gaming, and IP licensing. Iqiyi competes directly with Tencent Video, Alibaba’s Youku, ByteDance’s MangoTV, and Bilibili. The company is 45% and 5% owned by Baidu and Xiaomi, respectively.

Nimble, smart, and staying ahead. Argus has identified six companies that we believe should be added to our Innovation theme model portfolio. These are companies we know well (which we like) and that continue to perform well and demonstrate financial stability and success. Over and over again, they nurture their innovative mindset, responding to market needs and trends, remaining nimble, and adapting to stay ahead. Our team of analysts regularly review and analyze growth trends, business models, and management strategies, and we have 30 stocks in this portfolio. We break the theme into four categories of innovation: First to Market; New Product Specialists; Product and Process Perfectors; and Industry Disruptors. We enjoy throwing ourselves into this theme as we continue to learn about new technologies and discoveries. Below are the six companies recently added to our portfolio. All are rated BUY at Argus. To see the complete list of companies in the portfolio, please see the Theme Portfolios section of the Argus website. Note that these model strategies can be licensed for direct money management.

Netflix’s relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

Roku enables consumers to stream television programming. It has more than 90 million streaming households and provided 127 billion streaming hours in 2024. Roku is the top streaming operating system in the US, reaching more than half of broadband households, according to the company. Roku’s OS is built into streaming devices and televisions that Roku sells and on connected televisions from other manufacturers that license Roku’s name and software. Roku also operates the Roku Channel, a free, ad-supported streaming television platform that offers a mix of on-demand and live television programming. Roku generates revenue primarily from selling devices, licensing, and advertising, and it receives fees from subscription streaming platforms that sell subscriptions through Roku.