Alibaba, the Chinese e-commerce giant, will launch an online video streaming service in the next couple of months, aiming to match the success in China that Netflix and Hbo have in the United States. The service will be called Tmall Box Office (Tbo) and will offer content purchased from China and other countries, as well as original productions in which Alibaba will directly invest. With this decision, the group founded by Jack Ma and listed on Wall Street will launch itself into a highly competitive market in China where companies are investing billions of dollars in the purchase of content. This is an industry set to triple its value, exceeding $2018 billion by 214, according to iResearch, a Shanghai-based internet consultancy.
“Our mission, everyone's mission here at Alibaba, is to redefine home entertainment,” said Liu Chunning, president of digital entertainment division. “Our goal is to become like HBO or Netflix in the US,” Liu concluded. What is not yet clear is how this new Alibaba project will coexist with Youku Tudou, one of China's largest streaming platforms, of which the e-commerce giant acquired 16,5% last year. However Tbo, unlike its Chinese competitors, will have 90% of the content visible only through the payment of a subscription or the direct purchase of the single product, while 10% will be visible for free. Also not to be underestimated is Netflix's intention to expand into China, even if the Asian country's market is very difficult for foreign internet groups.
