What’s new: Alibaba Group Holding Ltd. plans to invest HK$5 billion ($640 million) over the next five years into the film and TV industries in Hong Kong.
Alibaba’s Digital Media and Entertainment Group, one of its six business divisions, unveiled the investment plan Monday, committing closer cooperation with Hong Kong’s entertainment sectors to invigorate businesses in the city.
The money will be mainly spent on purchases of copyrights and TV series, film production and performance, as well as venue construction and talent education, said Li Jie, president of Alibaba Pictures Group Ltd.
The context: The investment is part of a broader plan to revitalize Hong Kong’s once-flourishing cultural scene as Alibaba’s media and entertainment businesses such as Alibaba Pictures and video streaming site Youku are betting on the city to drive growth.
Youku last year rode on the success of the Hong Kong TV newsroom drama “The Queen of News.” However, the long-form video platform has been struggling to catch up with rivals such as Baidu-backed iQiyi and Tencent Video in terms of active users.
In the last quarter of 2023, the Digital Media and Entertainment Group booked an 18% increase in revenue to 5.04 billion yuan ($702 million). But its net loss expanded to 517 million yuan, mainly reflecting the weak performance of Youku.
Contact reporter Han Wei (weihan@caixin.com)
