From Ecommerce to Entertainment – A Synergistic View
Yu Yongfu Chairman and CEO, Alibaba Digital Media & Entertainment Group Chairman and CEO, Alibaba Pictures Our evolving entertainment business Health + Happiness strategy Alibaba Digital Media & UC Web introduced by Jack Ma Alibaba Music Entertainment Group Acquired in Jun/14 Oct/14 Launched in Jul/15 Established in Oct/16
2014 2015 2016 2017 2018
Alibaba Pictures Youku Tudou Damai Acquired in Jun/14 Acquired in Apr/16 Acquired in Mar/17 HAVE FUN Light up people’s lives with joy Content Consumer Three Cornerstones of our Business Success Commercialization Consumer
Live @ Alibaba
Youku Tudou Tmall TV Alibaba Pictures* UC Web Alibaba Music Alibaba Gaming Alibaba Literature
*Alibaba Pictures is an affiliated entity. Consumer Ecommerce Entertainment
Bringing new users and new ** 500+ MM 500+ MM datasets of Chinese consumers to MAU* MAU* the Alibaba ecosystem
Data source: Alibaba Group. *Ecommerce MAU denotes China retail marketplaces MAU in March 2017. Entertainment MAU denotes the global MAU in March 2017. **Tao Piao Piao is an affiliated entity. Consumer
Exclusive broadcast of 2016 Singles Day on Youku Create a fun shopping experience while tapping into Youku’s vast reach to drive sales Consumer
Cross-platform membership referral • Trial Youku membership with Tmall promotion • Cash rebate on Tmall with Youku subscription Consumer
Youku’s original content created for Tmall Exclusive Youku content sponsored by Tmall and Tmall merchants Consumer
* Our media matrix enables a multi-faceted understanding of consumers
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*Tao Piao Piao and Alipay are affiliated entities. UC UC Headlines UC Headlines Consumer Browser (China version) (Intl version)
UC has successfully transitioned from mobile browser to data-driven news feed media UC Headlines has over 200 million MAU globally
No. 1 in India and Top newsfeed media in Indonesia China
Data source: Alibaba Group, as of April 2017. Ranking data derived from iOS Store and Google Play Store rankings. Consumer
10 million MAU in Russia
Canada Germany China’s first USA Italy mobile browser 27% market share Saudi in Pakistan UC has gained a strong foothold in fast- Arabia 57% market 7% market share in Vietnam share in India 18% market share growing markets in Ethiopia 12% market share Brazil in Nigeria 47% market share in Indonesia No. 1 mobile browser Top ranking app India Indonesia South Africa
Data source: StatCounter (based on page view market share as of April 2017), App Annie. Content
Our original drama series are enormously popular 3 million 20 million viewers per episode viewers per episode
Data source: Alibaba Group and Luth Research on Netflix viewership. Content Alibaba Literature Alibaba Music Damai Alibaba Gaming
News & Original Information content A comprehensive media group that Merchandising Movies distributes creative properties across Novels & Music Live Gaming Short-form video platforms to maximize value Literature Events
UC Headlines Youku Alibaba Pictures* Tmall Tudou
*Alibaba Pictures is an affiliated entity. Content Multi-channel distribution and value creation
RMB300M+ GMV
Youku Alibaba Pictures** Yulebao** Taobao & Tmall Online distribution & licensing Theatrical movie Crowd-funding Merchandizing Tao Piao Piao** Movie distribution & ticketing Data source: Alibaba Group, end of March to May 2017. **Alibaba Pictures, Tao Piao Piao and Yulebao are our affiliated entities. Content An Amblin Film US$88M US$64M Alibaba Pictures*: building the bridge between the US and the Chinese film industries
US China box office box office
Data source: Boxofficemojo (a subsidiary of imDB) for US box office; Entgroup Inc for China box office. *Alibaba Pictures is an affiliated entity. Content
Digital platforms + Data technology Create new space for growth and reengineer the value chain Content
Top 2 movie ticketing service • 80% of all movie tickets are sold online in China, versus ~30% in the US • Transition from ticketing service to media • Data-driven marketing and distribution Tao Piao Piao*
Data source: Alibaba DME management estimates. China market data is from industry reports published by the National Press and Publication Bureau of Radio and Television. US market data is from industry experts and Alibaba DME management estimates. *Tao Piao Piao is an affiliated entity. Content US$29B Estimated 2016 live performance market Damai is well-positioned to capture the untapped potential US$7B for live performance in China Tickets for over 4,000 events 类别 1 类别 2 and 900 venues sold per day China US
Data source: Alibaba Group, as of May 2017. Chinese market data is from the Performing Arts Association of China. US market data is a combined statistic from PwC Global Media & Entertainment Outlook, The Broadway League, and PwC Sports Outlook. Commercialization Commercialization
Uni-marketing Paid Subscription Merchandizing Commercialization Media matrix = Broader reach to consumers Data matrix = More diversified and precise targeting Uni Identity = More effective closed-loop marketing 13,000,000
11,250,000 Commercialization
9,500,000 Youku has seen rapid growth in paid
7,750,000 subscriptions over the past quarters
6,000,000 Aug-16 Dec-16 Mar-17 2016Q3 2017Q1 Data source: Alibaba Group. Generating multiple revenue streams through cross-platform monetization
Commercialization TV Dramas Movies Online distribution Box office Cable distribution Box office *
Movie remake Online distribution Online distribution * Online merchandising Aftermarket * Musical/Play remake Online merchandising
类别 1 类别 1 1 类别 类别 1 Traditional Alibaba Traditional Alibaba
*Alibaba Pictures and Tao Piao Piao are our affiliated entities. From Ecommerce to Entertainment
• Our entertainment business complements e-commerce business with new consumers and new datasets • Our digital solutions and data technology are the new infrastructure for the industry • Maximize value of the creative properties by leveraging multiple media assets across Alibaba Group