Alibaba Pictures has entered into an agreement with parent company Alibaba Group to acquire its movie related businesses for $520M. This will go towards creating “an innovative and integrated online and offline platform of demand-driven movies and TV dramas,” the company said. Among the businesse Alibaba Pictures is buying are online ticketing platform Taobao Movie, and financing and investment platform Yulebao.
“By integrating Taobao Movie and Yulebao into Alibaba Pictures, we will develop an innovative business model that encapsulates the entire industry value chain — beginning with the production of content demanded by users, letting users fund those projects, marketing and distribution, as well as a cinema services platform,” said CEO Zhang Qiang.
Online ticketing has grown in China and Taobao’s addition to the group will enhance promotion and distribution capabilities, providing access to a growing user base and their tastes and trends.
Alibaba Pictures was formed last year through the acquisition of ChinaVision Media Group. It has since entered deals with the likes of Lionsgate and Wong Kar Wai and invested in Mission: Impossible – Rogue Nation and Korea’s upcoming Real as it looks to become a global player.