Alibaba is poised to launch a Netflix-style video streaming service in China less than two months from now, and here's everything we know about it.
The upcoming video streaming would be similar to Nextflix. Alibaba Group Holding Ltd. announced on June 13, 2015 that China's e-Commerce giant would start an on-demand, subscription-based online video streaming service that would show both global and local media content.
"Our goal is to become like HBO in the United States, to become like Netflix in the United States," Alibaba's president for the Digital Entertainment division Patrick Liu said at a conference held in Shanghai.
It's called Tmall Box Office (TBO). Reminiscent of the most radical media producer in America, HBO, Alibaba christened the new web streaming service TBO.
It would only be available at China. TBO would stream premium on-demand video content to China alone upon its initial release. But, further expansion is an option.
Alibaba would be entering at a highly competitive market in China. Alibaba's TBO would plunge into a bloody ocean filled with billion-dollar companies who would do anything to amass a predominant audience. Its rivals would be Tencent Holdings Ltd., Sohu.com Inc. and Leshi Internet Information & Technology Corp Beijing.
Reuters said that it's still uncertain how this plan sits with Alibaba's stock share at one of the top companies in China providing a similar video streaming service Youku Tudou Inc.
Only ten percent of the service would be free of charge.
In contrast to most of its local competitors, over 90 percent of Alibaba's imminent media streaming service should be paid for per month or per show. Users should get a subscription fee and sign up to gain access to premium packages.
Interestingly, Reuters said that Netflix is also planning to penetrate the Chinese market.
"Netflix itself is also considering an entry into China, a notoriously difficult task for foreign Internet companies," Reuters reported.
