Tencent Holdings' unveiling of its own film company, Tencent Penguin Pictures, on Friday marks the Chinese Internet giant's foray into the country's fast-expanding movie market.
Tencent is the latest among technology companies like Alibaba Group Holding and Baidu Inc. to expand its technology business into the film industry.
According to company officials, the unit will focus on film and drama production. It will also serve as an agent for personalities in the entertainment arena.
Sun Zhonghuai, Tencent vice president, stated during a press conference that it eyes to invest in the production of 10 to 15 titles annually. Moreover, it plans to produce eight Internet dramas.
Before Penguin Pictures was unveiled, Tencent has already invested in various film productions since last year, including the blockbuster hit "Monster Hunt."
Recently, Alibaba, Baidu-backed iQiyi and Internet TV firm Youku Tudou Inc. have launched their respective film divisions.
Alibaba Pictures first made headlines as it debuted in Hollywood this year by investing in the latest "Mission: Impossible" franchise installment. The movie has garnered a box-office revenue worth 418 million yuan in its first five days.
For analysts, the country's booming film industry has been constantly attracting Internet giants. As of Sept. 5, the country's box-office revenue has already exceeded 30 billion yuan, a record-high, according to the Xinhua News Agency, citing data from the State Administration of Press, Publication, Radio, Film and Television.
Chen Shaofeng, deputy dean of Peking University's Institute for Cultural Industries, remarked that "China's film industry is expected to grow 30 to 40 percent this year, far outpacing the rate of economic growth, as an increasing number of Chinese people go to the theater more frequently."
EntGroup-affiliated analyst Fu Yalong also said that the online sales channels run by e-commerce giants have been a significant factor in this record-breaking box-office feat, accounting for about 64 percent of total ticket sales.