Details of the deal involving Alibaba, Hunan TV and DMG have already been released. (Photo : Reuters)
China's e-commerce powerhouse Alibaba Group Holding Ltd. teams up with entertainment giants DMG Entertainment and Hunan Satellite Television for a deal eyeing to expand cable, mobile and subscription-based Internet in the Chinese market.
Initially, the service will be offered to Hunan's six million cable TV users and later on expand its presence across the nation. This is according to a filing to the Shenzhen Stock Exchange on Wednesday.
Both DMG and Hunan are listed in the said stock exchange center.
The service includes gaming, TV and film content. Furthermore, fee-based educational as well as gaming content are also set to be rolled out, the statement revealed.
The deal serves as a feat in the Chinese market, as it is the first bundled cable TV, Internet and mobile entertainment service in the country.
The statement also said that the service will be offered via Alibaba's e-commerce platform, TMall.
However, the filing did not disclose the worth of the deal yet.
The recent Alibaba deal is part of the firm's effort to secure a share in the lucrative entertainment sector in China, regarded as the world's second largest movie market in terms of revenue.
Last month, the leading e-commerce firm in China revealed its intent to launch a pay-to-watch video subscription service, Tmall Box Office (TBO), this coming September. Also, in the past 18 months, Alibaba was able to pour in huge amounts of investments in the entertainment industry.
Currently, Alibaba has its very own Alibaba Pictures, a film studio, a movie-ticketing website and a crowd-funding product for film titles. It also has an 18.5-percent stake in one of China's biggest video-streaming firms, Youku Tudou Inc.
Moreover, Alibaba founder and chairman Jack Ma, with its investment firm, holds a minor share in a major Chinese film studio, Huayi Brothers Media Corp.
The deal is also seen beneficial to DMG, a Beijing-based company, which currently beefs up its strategy in becoming a global entertainment powerhouse alongside rivals such as Sony Pictures Entertainment.
