Alibaba’s Hidden Entertainment Industry Plans – Yet To Be Unveiled

06 Apr

Alibaba's Hidden Entertainment Industry Plans


Alibaba’s future strategy regarding its presence in the Entertainment industry is yet to be explained. Despite the loss seen in last week’s results regarding Alibaba Pictures, the company has not announced the future decisions.

A constant thought of how the China’s e-commerce giant is looking into monetizing its business remains unclear. This mystery is worth the Hollywood movie. Alibaba has obtained the Hong Kong based film studio. Latest Alibaba news reports that there are several steps that the company has took which reveal the company’s stance and firm ambition of entering the entertainment business. But how all these collaborations and acquisitions fit into a strong and forthcoming strategy remain indistinct. There is an e-commerce business, a share in Yoku, an online video service, collaborates with BMG music and Lions Gate which is a studio for film and television. The leading entertainment unit that the company holds in entertainment sector is Alibaba Pictures which was established after acquiring major chunk in China Vision Media Group which is a Hong Kong based movie studio.

Last week, Alibaba Pictures informed about the entire year earnings and the picture wasn’t that worthy. Numerous deficiencies regarding the misstated taxes were discovered by the company after attainment was there resulting in 417.3 million Yuan of net loss which is approximately $67.3 million. Due to delay in films and TV dramas, the revenue had been fell too. These losses were obviously expected but the shares for Alibaba Pictures have their own persistency. Since January, the shares for this has been doubled in value. The company claimed that they had no reason for what the shares have been increasing. The share trading had been paused on March 24 and even without a further explanation the shares remained ceased.

According to the Alibaba news, the shares for Alibaba Health Information Technology which is a Hong Kong based sector of the parent company had been at halt since March 23. There could be a possibility that the parent company which is an e-commerce giant is deciding to delist these two sectors. Another approach towards the halts could be of a new deal coming up for the company.

Investors are still perplexed regarding what strategy Alibaba is following or is planning about. As of what happened regarding the last week’s results, Alibaba Pictures expressed that the company and its parent “have explored a user-demand-oriented e-commerce customization model through the Internet and big data, in addition to developing a cross-industry in-depth cooperation model for e-commerce and cultural and creative industry by taking advantage of the deployment of O2O (online to offline) film related business in ways such as conducting promotion and marketing activities on Alibaba Group’s e-commerce platforms.”

This might clarify as to what the e-commerce giant is planning on to do for future. As for now, the people who have invested in the company are still in dark and are wishing for the real show to begin.

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Posted by on April 6, 2015 in Ali Baba, Technology


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