(Yicai Global) May 21 -- IQiyi Inc., Chinese internet behemoth Baidu Inc.'s video streaming unit, has officially unveiled its video-on-demand, VOD, cinema brand Yuker, starting offline business in a move that will irk its rivals.

IQiyi has opened its first offline cinema brand Yuker in Zhongshan, the southeastern Guangdong province. The company will open cinemas in multiple first- and second-tier cities in China in the future, it said.

Yuker, a video-on-demand, or VOD, cinema, integrates individualized demands of internet users and the high quality audiovisual effect of traditional cinemas. It is an intermediate business format between cinema and online video platform and is a favorable complement to the current film market, said Yang Xianghua, senior vice president of iQiyi, according to Beijing Business Today.

IQiyi will combine its online membership system with that of Yuker after opening more offline cinemas to bring more convenience to users, Yang said.

IQiyi has also recently stepped into the online ticket service market by taking over Baidu's Nuomi Pictures. The internet giant will transfer all its film ticket-related resources to iQiyi, said Gon Yu, founder and chief executive officer of iQiyi, on May 17, adding that the business transfer is underway.

Baidu is currently holding nearly 70 percent of shares of the company, iQiyi's IPO prospectus showed before its listing on the US Nasdaq stock market on March 29.  Unveiled in 2010, iQiyi began to expand its membership base in 2011 and has attained 50.8 million paying members by the end of last year.

Editor: Mevlut Katik