iQIYI's New Model: Short-Form Drama 'Dead of Winter' Rewrites Rules

BEIJING – August 13, 2026 – Chinese streaming giant iQIYI is redefining digital entertainment with the launch of Undercurrent Theater, a new brand dedicated to premium, horizontal-screen short-form suspense dramas. Its debut series, "Dead of Winter," has become an instant hit, shattering viewership records and validating a business model that could reshape how content is produced and consumed in China's fiercely competitive streaming market.

A Phenomenon Forged in Winter

The immediate success of "Dead of Winter" is a testament to the platform's strategic foresight. Since its premiere on August 4, the gritty crime drama has captivated audiences, achieving a peak iQIYI content popularity index of 6,638. While the platform's most viral blockbusters can exceed an index of 10,000, this figure is a significant milestone, marking the highest score for a revenue-sharing short-form drama on the platform since 2024.

The show's dominance extends beyond iQIYI's internal metrics. According to leading Chinese entertainment data providers like Enlightent, Maoyan, and DataWin, "Dead of Winter" has consistently topped industry rankings. At its peak, the series commanded a staggering 60.9% daily market share, a feat achieved by only one other horizontal short-form drama this year—iQIYI's own "The Ferry Man 10th Anniversary."

This overwhelming viewership has translated directly into commercial triumph. The series generated over RMB 5 million (approx. US$740,000) in revenue-sharing earnings within just five days of its release. Projections indicate it will surpass the RMB 10 million (approx. US$1,480,000) mark within its first nine days, proving that high-quality, short-form content can be immensely profitable.

Set in a stark, wintry landscape in a small northeastern Chinese city in the late 1990s, the series follows two estranged friends—a community cop and a criminal investigator—who reunite to unravel a series of crimes tied to an eight-year-old family tragedy. Viewers have praised its fast-paced storytelling, strong performances, and its grounding in "social realism," a quality that has sparked considerable discussion online. The social buzz has been immense, with over 20 derivative short videos each garnering more than 100,000 likes and vocal audience demands for a second season.

The Strategic Shift to Snackable Cinema

The triumph of "Dead of Winter" is no accident; it is the culmination of a deliberate pivot towards a format that meets the demands of modern audiences. The rise of short-form content has been described by industry analysts as a "consequential shift" in Chinese entertainment, and iQIYI has positioned itself at the forefront of this trend.

The platform's strategy distinguishes between different types of short-form content. While vertical-screen "mini-dramas," typically 1-3 minutes long and often ad-supported, cater to casual mobile viewing, Undercurrent Theater focuses on a more premium, "horizontal-screen" experience. With episodes running between 10 and 25 minutes, these productions offer cinematic quality and narrative depth in a condensed, binge-worthy package. It's a format that respects the viewer's time without sacrificing the production values of a traditional long-form series.

iQIYI has been methodically building its capabilities in this area. The company has referred to short-form content as a "critical growth driver," and its micro-drama library ballooned to over 50,000 titles in the first half of 2026. This vast catalog demonstrates a long-term commitment to understanding and mastering the format, allowing the platform to refine its approach and identify winning formulas. By launching Undercurrent Theater as the industry's "first dedicated horizontal short-form suspense drama brand," iQIYI is not just participating in a trend but actively seeking to define and lead a new market category.

A New Blueprint for Content Creation

At the core of Undercurrent Theater's success is an innovative business strategy: a robust revenue-sharing model. This approach, where production partners share in the earnings generated by viewership, fundamentally changes the dynamic between platform and creator. Instead of relying solely on upfront licensing fees, it creates a partnership where both parties are invested in the content's success.

The financial performance of "Dead of Winter" provides a powerful proof of concept. For independent studios and production teams, the potential to earn over a million dollars in just over a week from a short-form series is a powerful incentive. This model democratizes opportunity, encouraging creators to pitch ambitious, high-quality projects with the assurance that commercial success will be directly rewarded.

"This model fosters a more dynamic and competitive ecosystem," noted one industry commentator. "When creators have a direct stake in the profits, they are motivated to push creative boundaries and produce content that truly resonates with audiences, rather than just fulfilling a commission."

This approach allows iQIYI to cultivate a diverse pipeline of premium content without bearing the full financial risk of production. By leveraging its advanced AI, big data analytics, and massive user base to predict trends and promote content, the platform provides its partners with the tools they need to succeed. The result is a win-win scenario: creators are empowered, the platform's content library is enriched with diverse and high-quality shows, and viewers get the engaging stories they crave.

Building a Suspense Dynasty

iQIYI's venture into short-form suspense is built on a solid foundation. The company is widely recognized for having "pioneered the Theater mode and defined the premium suspense genre in China" with its acclaimed long-form brand, Suspense Theater. Undercurrent Theater is a natural evolution of this legacy, applying the same "cinematic production standards and narrative discipline" to a shorter format.

This commitment to genre specialization is a key part of the platform's strategy. By creating a dedicated brand for suspense, iQIYI can cultivate a loyal audience and build a reputation as the definitive home for high-quality thrillers. The pipeline for Undercurrent Theater already signals this ambition. Upcoming titles include "The VI Group of Fatal Case," a prequel to a beloved 2001 crime procedural, and "The Murder Truth," an adaptation of a popular novel that weaves together 18 interconnected cases.

These projects demonstrate a clear strategy to both revive classic intellectual property and develop new, original stories that push the genre forward. By deepening its focus on vertical genre tracks, iQIYI is not just creating shows but building entire worlds and brands that can sustain audience interest over the long term, cementing its position as the home of premium Chinese suspense storytelling for a global audience.