The entertainment and media arm of Chinese technology giant Alibaba Group Holding will invest at least HK$5 billion ($640 million) over the next five years to foster the development of Hong Kong's entertainment and film sector.
Alibaba Digital Media and Entertainment Group on Monday partnered with entertainment companies in Hong Kong and mainland China to revitalize “Hong Kong's once-thriving cultural scene,” including producing TV dramas and films and supporting young talent. He announced that he would do so.
The company said the capital will be deployed across its digital media and entertainment group's businesses, including video streaming platform Youku and film production division Alibaba Pictures.
Alibaba Pictures plans to establish a second headquarters in Hong Kong, following its existing headquarters in Beijing, according to Digital Media and Entertainment Group.
The Digital Media and Entertainment Group remains a small business within Alibaba's vast empire, contributing just 1.9% of the tech giant's $37 billion in revenue in the three months to December. During the same period, the Entertainment and Media segment saw revenue rise 18% year-on-year to $710 million, driven by higher profits from Alibaba Pictures, which accounted for more than half of China's total box office revenue in the quarter. Alibaba stated this in its financial report.
Alibaba established the Digital Media and Entertainment Group in 2016 and set up a 10 billion yuan ($1.4 billion) fund for new projects. At the time, the move signified a merger of Alibaba's media assets, including Youku Tudou and his Alibaba Pictures, with the company's gaming, music and other digital businesses.