The Chinese giant, Alibaba Group, is planning on investing quite heavily in the entertainment domain, an area which is not that easy to access in China.
Alibaba Group Holding Limited is a Chinese company. Founded in 1999, it is based in Hangzhou, China. It is specialized in e-commerce. As such, it ensures a variety of services in the area.
It provides business-to-business and consumer-to-consumer sale services. Business-to-consumer services are also ensured. All these are offered and assured via web portals.
Alibaba also ensures data-centric cloud computing and electronic payment services. It also has a shopping search engine.
They are perhaps most commonly thanks to this latter. Alibaba Group is the developer of AliExpress and its Alipay system.
Presently, Alibaba is considered the dominant content provider in China. An estimated 700 million Internet users make use of their services.
As it is, the Alibaba Group could continue to strengthen their position. They will be doing so by investing in the entertainment area.
China has a quite a notoriously hard to enter such domain. Amazon and Netflix are amongst the big international names to have tried to access it.
An internal Alibaba Group email is the source of the new plan. Yu Yongfu was noted to have announced it. He is the CEO of Alibaba Digital Media and Entertainment Group. This is the Alibaba Group entertainment arm.
Yongfu has set out to invest over 50 billion yuan. The value would convert into an approximate $7.2 billion. It would be invested over the following three years in content.
The internal announcement was said to have been released on Wednesday. Alibaba Group representatives have yet to release an official comment.
Alibaba has already invested in the entertainment area. It downright doubled its investment in the domain earlier this year. In October, the e-commerce giant split and formed its entertainment arm.
The aforementioned division has several targets. It is set to consolidate Youku Tudou. This is a video website, similar to YouTube. They will also be in charge of the Ali Music Group and Alibaba Pictures Group.
Alibaba also has multiple gaming, digital assets, and literature divisions. Besides developing the current areas, Alibaba Media will also be initiating new projects.
Alibaba Group launched the arm with a reported over 10 billion yuan investments fund.
Chinese information and content delivery are a difficult sector. Especially so for international media companies. Earlier this year, Disney set out on a joint venture with the Alibaba Group.
However, the DisneyLife project was shut down in April. It had a lifespan of just about 4 months. Apple was one of the foreign companies to successfully enter the Chinese market.
As it is, their services were also sent offline. Their iBooks and iTunes Music had a lifespan of nearly 7 months. Amazon launched their Prime subscription service in October. Later the same month, the company CEO stated that the usual playbook cannot be run in China.
The Alibaba Group has had a more successful international outreach. It has bought a stake in Amblin Partners. Through it, they will distribute and produce content. This will be distributed both in China and internationally.
Alibaba Pictures has also invested in Hollywood blockbuster productions. Its Youku service was also marked as bringing in profit.
The Alibaba Group reported a third-quarter increase. Released in November, their earning report saw a 302 percent year-over-year rise.
Alibaba Group afternoon trading shares were down on Wednesday. They decreased by 0.07 percent to a $87.48 per share value.
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