Alibaba’s Ambition of a New Entertainment Empire

China’s dominant e-commerce platform Alibaba is just trying to build glamorous empire in entertainment area.

According to IHS Technology’s report, China’s box office rose by a third to hit $4.8bn in 2014. That is 1/2 of the US figure. But the latter shrank 4 per cent last year.

Chinese entertainment market to overtake the US, and reach $10.6bn, by 2019, experts predicted.

While last year global online film distribution generated $10bn in sales. Netflix, which distributes TV shows as well had revenues of $5.5bn.

Alibaba’s principal vehicle for content production is Hong Kong-listed Ali Pictures, which was formed last year after Alibaba bought 60 per cent of ChinaVision Media.

In January, Alibaba said its first film will be a collaboration with two big stars: producer Wong Kar-Wai and actor Tony Leung.

On the other hand, Alibaba empire does not rely exclusively on Ali Pictures. Founder Jack Ma owns 4 per cent of the Shenzhen listed film-maker Huayi Brothers.

Last November Alibaba struck a deal with that company to fund productions and allow investment through its grandstanding site, Yule Bao.

This month, Hangzhou Ali Venture Capital purchased a reported9 per cent of Beijing Enlight Media, which makes TV shows and films, for $383m.

Alibaba makes set-top boxes with partner Wasu, and it also has a quarter of US-listed Chinese online video site, Yukou Tudou.

Have the strong online brand and deep pockets of the parent, Alibaba’s entertainment businesses have a shot at success.