den 15 juni 2015

Important legal information

Alibaba wants to revolutionize home entertainment in China

Recent announcements from Alibaba’s head of Digital Entertainment reveal plans for an online video streaming service in China which is similar to Netflix and HBO. The service could include content from China and other countries as well as in-house productions. The business model as well as the market strategy resembles the Netflix case. Alibaba already has a minority stake in Youku Tudou, one of Chinas biggest video streaming platforms. Today, it isn’t clear how they will fit together or if they will share services or content. According to company announcements, roughly 90% of the content could be for subscribers only, whereas only 10% of the content could be free of charge. According to market reports, Netflix is also planning to enter the Chinese market entry. Given the heavy market penetration and competitive strength of Alibaba in China, it will be interesting to see, what market forces will take place between this big internet company, Netflix and other US and Chinese competitors.



2022-12-05 05:18:15