Alibaba Digital Entertainment YANG Weidong, President of Youku Meet, Work and Live @ Alibaba
Expand User Base Increase Time Share Grow Mind Share
1 Time Spent (min) Live @ Alibaba
E-commerce Entertainment 0.5
0 24 Hours • Bringing new users and new consumer insights to the Alibaba ecosystem 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
2 Cross-platform Synergies
High-quality Original Content
Integration of Gaming and Literature Xiami Music Alifish • Ranked eighth most-popular free game on APP store • OST Album Subscriptions Totaled 10 Million2 • Merchandising, cross-selling to sports, clothing, toys and other categories 3 • Number of paying readers grew 360%1 • 20+ SKUs
Notes: (1) Comparing Feb 22,2018 with Mar 7,2018. Two weeks before and after the show was broadcasted. (2) From June 29, 2018 to July 31,2018. 3 (3) Non-consolidated businesses. Original Content User Base Youku’s Growth Strategy
Data Technologies
4 Advantages and Value of Producing Original Content Title ROI
Results Success 《DUNK OF CHINA》 Revenue User Benefits Rate Revenue Original Cost Multiple Ways to Commercialize
Optimal Show Time Schedule Why Original Content? SINGER 2018 《 》
Revenue IP Ownership Licensed Cost
Original Content Capability
5 Original Content Strategy I Build an Ecosystem around High-quality Content Production
Strategic Partners Number of Self-operated Studios Number of Investees Investees Cartoon
Others Animation +100% +129%
Literature Self-operated Movie Studios
Live Performance Variety Shows
Reality Shows Scripted Series
FY2017 FY2018 FY2017 FY2018
6 Original Content Strategy I Investing in Original Content Production
Overall Content Spending by Type Variety Shows Spending by Type
Licensed Licensed
Original Original
FY2017 FY2018 FY2017 FY2018
7 Original Content Strategy I Proven Track Record of Commercializing High-quality Original Content
Revenue from Commercialized Content Number of Commercialized Content （FY18 vs FY17, YoY） （FY18 vs FY17, YoY） 84 x 2 x
8 Original Content Strategy I Proven Track Record of Producing Top-tier Content
Top 30 Original Scripted Series Top 30 Original Variety Shows 13 11
8 9 6 5 5
3
Youku Company A Company B Others Youku Company A Company B Others
Source: Douban Rating, Jan 2017~Jul 2018,original content for online video platforms. Douban is China’s top commentary community, similar to Rotten Tomatoes. 9 Original Content Strategy I Top 10 Original Scripted Series
Ranking Shows Platform Release Date Douban Rating
01 ⽩夜追凶 YOUKU 2017 9.0
02 ⼀起同过窗 第⼆季 YOUKU 2017 8.8
03 你** A 2017 8.6
04 琅** A 2017 8.5
05 ⻁啸⻰吟 YOUKU 2017 8.4
06 河** A 2017 8.2
07 ⽆** A 2017 8.2
08 假如没有遇⻅你 YOUKU 2018 8.2
09 ⼤军师司⻢懿之军师联盟 YOUKU 2017 8.1
10 忽** B 2018 8.1
Source: Douban Rating, Jan 2017~Jul 2018,original content for online video platforms. Douban is China’s top commentary community, similar to Rotten Tomatoes. 10 Content Life Cycle
Data Technology Empowers Appraisal Production Distribution Experience Youku’s Content Strategy
11 Content Appraisal I Strengthened Content Production by Leveraging AI and Big Data Technology
Intelligent Script Analysis《Day and Night》 Casting《The Longest Day in Chang’an》 AI
Script Analysis Character Setting Proposal List Casting
DRA
Big DATA
• Performer data • Image / Comment • User profile • Scarcity of subject matter • Casting analysis • Entertainment user behavior data • Target user emotion analysis • Analysis of original readers
12 Content Production I Produce Hollywood Standard Videos at Lower Costs
Hollywood Standard Youku’s Proprietary Technology
Bullet Time
《The Matrix》 《Street Dancing of China》
Equipment Professional video camera x 120 Common video camera x 40
Function Specialized studio for certain special effects Easily deployed in common space for extendible 3D related special effect
13 Content Distribution I AI-driven Personalized Recommendations Enhance Distribution
AI-driven Recommendation : Matching Users and Contents The Architecture of AI Recommendation System
Users Contents (634MM1) （700MM2） Content Distribution
Highly Active Users OGC Video Knowledge Graph
Low Active Users PGC Understanding
New Users UGC Video Library
Notes: (1) Mobile MAUs on our China retail marketplaces.For the month ended June 30,2018 14 (2) Numbers of Youku’s videos as of June 30,2018 Improved Viewing Experience I Significant Improvement in User Experience through Technology Innovation
Narrowband HD 1080P HDR style with average 2Mbps bitrate
Youku’s Proprietary High Frame Rate Real-time frame rate conversion brings sports events live streaming to the next level Technology
Digital Remastering Classic movie reborn project, over 60,000 videos restored
15 Improved Viewing Experience I High Frame Rate
Before After
16 Improved Viewing Experience I Digital Remastering
Before After
17 Robust User Growth
AverageDaily Daily Average Paying Subscribers Subscribers
CAGR +180%
FY2016 FY2017 FY2018
18 Rapid Growth in User Engagement
Effective VV Per User Account Login Rate Bullet Screen Users
+16% +46% +99%
Jun 2017 Jun 2018 Jun 2017 Jun 2018 Jun 2017 Jun 2018
19 Alibaba Entertainment Synergies with Alibaba Ecosystem Participants YOUKU and Proprietary Content Production Capability Enhancement Alibaba Ecosystem
20 Joint Efforts to Create High-quality Content
2018 11.11 Countdown Gala Strong Commercial Synergies with to be Produced by Youku Our E-commerce Platforms
21 Content Increases Consumer Engagement on E-commerce Platforms
Popular Games on Taobao Hot Content on Taobao Entertainment on 88VIP Membership Dome Wei tao Live
Millions of new users
Most activated 22 service Live @ Alibaba
Alifish Alibaba Gaming Tao Piao Piao1 Alibaba Pictures1 Tudou UC Web Youku Alibaba Music Xiami Alibaba Literature Shuqi Novel Cool Young Damai
Notes: (1) Non-consolidated businesses 23 THANK YOU