September 23-24, 2019 Hangzhou, China Alibaba Digital Media & Entertainment Diverse Entertainment Platforms with Broad Scale FAN Luyuan, President of Digital Media & Entertainment 1 [VIDEO] 2 Tapping into the Growing Demand for Entertainment of Chinese Consumers 满足中国消费者日益增长的娱乐需求 3 01 Business 02 Business 03 Alibaba Digital Overview Strategy Economy Synergy 业务全景 商业策略 生态协同 4 01 Business 02 Business 03 Alibaba Digital Overview Strategy Economy Synergy 业务全景 商业策略 生态协同 5 Diverse Entertainment Platforms with Broad Scale 规模化多元化的娱乐平台 TV Series Variety Show Animation Documentary Literature Gaming Film Music Alibaba Digital Economy Consumers Digital Media and Entertainment Content 阿里巴巴数字经济体消费者 Sports 全娱乐内容 Folk Art Live Concert Music Concert Theatre Exhibition Show User + Merchant + Industry Insights 用户 + 商家 + 行业洞察 6 Premium Content Focused on Four Thematic Pillars 致力于四大主题的优质内容 Ordinary People · 小人物 Authentic Hero · 真英雄 Positive Energy · 正能量 Evoking Passion · 大情怀 7 (1) Paying Subscribers Growth +46% Leading Long-Form Video Platform in China 中国领先的长视频平台 June 2018 June 2019 Note: 1. Increase in number of average daily paying subscribers of Youku from June 2018 to June 2019. 8 (1) TOP 10 Grossing Films in China (RMB Billion) Wolf Warrior 2 5.69 Ne Zha 4.66 The Wandering Earth 4.65 Most Comprehensive Operation Red Sea 3.65 Detective Chinatown 2 3.40 Film Infrastructure The Mermaid 3.39 Dying to Survive 3.10 Service Provider in China Hello Mr. Billionaire 2.55 Monster Hunt 2.44 中国电影业最大的基础设施提供者 Monster Hunt 2 2.24 Note: 1. Beacon box office data as of August 31, 2019. Red movies are movies that are co-produced and distributed by Alibaba’s Digital Media and Entertainment segment. 9 (2) Damai's Concert Tickets Market Share Largest Online Ticketing Platform for Live Events in China(1) 70%+ 中国现场娱乐行业最大的服务商 Notes: 1. In 2018, according to Analysys. 2. For 2018, Damai sales as a percentage of China’s total concert box office sales (2018 China Performing Arts Market Annual Report, China Association of Performing Arts). 10 01 Business 02 Business 03 Alibaba Digital Overview Strategy Economy Synergy 业务全景 商业策略 生态协同 11 From Licensing to Owning Content 从“租赁”模式升级为“产权”模式 （1） （1） Ways to Obtain Content Overall Content Volume by Type Overall Content Spending by Type ／ 采买 + ／ 自建 Buy Build Licensed Licensed Self Produce ／ 自制 Partner ／ 合制 （2） （2） Owned Owned FY2018 FY2019 FY2018 FY2019 Notes: 1. Breakdown for Youku's drama and variety shows signed since FY2018, excluding content that costs less than RMB10 mn. 2. Ownership represents 50 years of copyright protection under PRC law. 12 Create Exportable Content Beyond China 优质内容出海 （ ） Exported Content Volume 1 +138% +129% FY2017 FY2018 FY2019 Note: 1. Content includes drama and variety shows. 13 Best Partner for Films Imported to China 海外影视公司在中国的最佳合作伙伴 Marketing Platform Entertainment Platform 首席营销平台 全系列观看 Jury Prize Best Best Picture Documentary （1） （1） （1） Taopiaopiao Points Taopiaopiao Points Taopiaopiao Points 9.3 8.7 9.1 （2） （2） （2） IMDb Points IMDb Points IMDb 8.4 Points 8.2 8.2 Trusted Partner of the Hollywood Big Six in China 好莱坞六大在中国的最佳合作平台 Notes: 1. Taopiaopiao data as of September 16, 2019. 2. IMDb data as of September 16, 2019. 14 Empower Industry | Provide New Infrastructure for Entertainment Industry 产业赋能 | 为文娱行业提供全链路新基础设施 Cinema and Finance Production Distribution Consumer Venue Management IP Commercialization 内容投资 内容制作 宣发推广 消费者决策 影院场馆经营 IP 衍生品 Address Financing Standardize Procedure Precise Marketing Viewing and Ticketing Platform Improve Operations Merchandise Improve Cash Flow Project Management Measurable Results User Community Decrease Costs 15 Empower Industry | Smarter Movie Marketing and Distribution 产业赋能 | 让电影宣发更智能 Strategy Resource Dynamic Value-added Development Allocation Adjustments Services Content Scalable Feedback, Evaluation Marketing Popularity New Retail + IP BEACON System Index + + 用户舆情监测 Digitization 内容评估体系 广告规模投放 新零售 + IP 400 280 Measurable Results 口碑传播 宣发热度指数 Efficiency Improvement (1) (1) Production Companies Movies Served (2) Resource Copyright Distribution Beacon Beacon 100% paying user repurchase rate Represent 38% of movies Center Protection Tools App Academy Notes: 1. Beacon data from June 1, 2018 to August 31, 2019. 2. Out of total films in cinema in China. Data sourced from Beacon from June 1, 2018 to August 31, 2019. 16 Global Version Pre-screening Pre-screening Before Release China Version Poster Positive Ratings by Viewer Groups Reviews Interested Users by Gender Data Insights Poster 国际版海报 试映会好评率 试映会观后评价 上映前观看意愿 数据洞察 国内版海报 Case Study Female Male Female Male Beacon Transforms Most suitable name TOP 1 Inspirational based on content <25 Age 55% TOP 2 Great Movie 与影片内容更契合的片名 Independent Movies >25 Age 45% TOP 3 Compassionate 27% into Popular Hits <25 Age 38% Avoid grey and dull >25 Age 36% color tones 灯塔助力小众电影，打造爆款 73% 避免使用灰暗和压抑色调 Increase main character portrait size 放大主角的演技和形象 17 After Premiere, Beacon Provides Real-time Data Insights China Version Poster 上映后，灯塔提供实时数据洞察 国内版海报 Box Office(1) Case Study 票房 Beacon Transforms China Independent Movies US$ MN into Popular Hits 54 灯塔助力小众电影，打造爆款 North America 1.6 US$ MN Note: 1. Box office data from Box Office Mojo. 18 Empower Industry | Smarter Cinema and Venue Management Systems 产业赋能 | 让影院场馆经营更智能 Advertisement Product Site Smart Ticketing Hardware Headquarter Member Official Marketing Website + + Fenghuang Yunzhi Maizuo Pipeline Dynamic Smart Cinema Smart Venue Pricing Channel 3,500 600 Management Platform Management Platform Cinemas on Venues on （ ） （1） Fenghuang Yunzhi 1 Maizuo Stable Ticketing System Data Analysis and Insight Operational Management System 稳定的票务系统 可视化数据服务 经营管理系统 Note: 1. Number of contracted cinemas and venues as of June 30, 2019. 19 01 Business 02 Business 03 Alibaba Digital Overview Strategy Economy Synergy 业务全景 商业策略 生态协同 20 A Marketing Channel for Alibaba Digital Economy 文娱业务成为阿里经济体商家精准营销的阵地 Live New Retail Show Merchant Local Service E-commerce × % Movie Variety … 2.1 12 Overlapping consumers buy more on Alibaba’s Youku of Alibaba’s China Retail Marketplaces’ Show TV (1) China Retail (2) Alibaba’s China Retail Marketplaces Paying Consumers are Youku Paying Subscriber Series Channel Marketplaces Subscribers Brand 重叠用户在阿里巴巴 重叠用户占比阿里巴巴中国零售平台 阿里巴巴中国零售平台 优酷付费会员 中国零售平台的购买力更强 年度活跃买家 … Notes: 1. Overlapping consumers means Youku paying subscribers who are also consumers of Alibaba's China retail marketplaces. For the twelve months ended on June 30, 2019, overlapping consumers spent 2.1x more than China retail marketplaces consumers who are not Youku paying subscribers. 2. Overlapping consumers as a percent of Alibaba’s China retail marketplaces consumers for the twelve months ended on June 30, 2019. 21 Eat Read Listen Travel Case Study 食在十二时辰 读在十二时辰 乐在十二时辰 游在十二时辰 Ele.me: Beijing Lamb (1) Shuqi Novel: Increase in (2) Xiami Music: (3) Fliggy: Increase in ticket sales (4) The Longest Day in Soup Orders Increased by 180% eBooks Readership 610% Clicks of trial OST 5.8mn Xi’an’s Chang Hen Ge 64% Chang'an Relevant Content Drives More Consumption in the Alibaba Digital Economy 头部IP价值带来的集团生态共赢 Notes: 1. The Longest Day in Chang’an was released on June 27, 2019. Increase in orders of Beijing Lamb Soup was calculated by comparing number of orders between June 18 and June 26, 2019 with number of orders between June 27 and July 5, 2019. 2. The peak number of times the ebook of “The Longest Day in Chang’an” was read on the Shuqi app in July 2019 divided by the average number of daily unique readers of the ebook in June 2019. 3. Xiami data as of August 31, 2019. 4. The increase in Chang Hen Ge ticket sales was calculated by comparing average daily sales from June 14 to June 20, 2019 with the average daily sales from June 28 to July 4, 2019. 22 Online to Short Term to Content to Merchandise to Offline Full Year Talent Cultural Consumption Case Study 线上到线下 短期到全年 节目到艺人 商品消费到文化消费 Street Dance of China 2 The combination of show and fans Performances and competitions Sign top performers and License 10 brands Online and offline dance classes Value Leveraged Across the creates other monetization opportunities build branding across the country continue to develop existing talents Entire Digital Media and Entertainment Platform 全文娱业态协同 23 Diverse Entertainment Platforms with Broad Scale 规模化多元化的娱乐平台 24 25.