Hong Kong Immigration insights on Hong Kong immigrant life: According to a report by Hong Kong's Ta Kung Pao, Alibaba Chairman Jack Ma, who is deeply involved in the film industry, is actively laying out his strategy behind the screen. In addition to launching the Chinese version of HBO, "Tmall Cinema," through Alibaba Pictures, he is further targeting discerning audiences by partnering with Television Broadcasts Limited (TVB) to produce films and television dramas, and introducing TVB's productions into Alibaba's home entertainment system. The emphasis is on no longer creating traditional "Hong Kong dramas," but rather catering to the needs of users in mainland China.
A spokesperson for Television Broadcasts Limited confirmed in response that they have reached a principle cooperation agreement with Alibaba's Yulebao, covering film and television production, e-commerce, and the development of peripheral merchandise. Among these, Alibaba plans to introduce TVB's productions into its home entertainment system.
Regarding the subject matter of the films and dramas to be produced, the spokesperson stated that it will be decided jointly by both parties, although the entire production process will be handled by TVB. She emphasized that the details of the cooperation are still being drafted and specific information remains to be announced.
Liu Chunning, President of Alibaba Digital Entertainment, noted in an interview with mainland media that TVB possesses unique content production capabilities but may lack market opportunities, which is exactly what the partnership with Alibaba's Yulebao addresses. He continued that they will introduce TVB content into the home internet TV platform, and therefore, "the TVB dramas we (Alibaba) create will no longer be traditional Hong Kong dramas," but will be more suited to the needs of mainland fans and users, emphasizing that "we will never follow the old path of video websites, but rather create something different."
The "something different" that Liu Chunning refers to is derived from film and entertainment merchandise. He explained that in countries with developed entertainment industries such as the United States, Japan, and South Korea, box office revenue may only account for one-third of the total for the film industry. However, films generate greater revenue through copyright fees, and as cultural products, they build consumer awareness of brands and stars, thus forming a massive market for derivative products.
Yulebao, which is partnering with TVB this time, is a value-added service platform created by the Alibaba Digital Entertainment group in March last year in collaboration with financial institutions. Internet users can invest 100 RMB to invest in popular film and television works. Liu Chunning stated that they have invested in nearly 20 films in the past, with a cumulative box office exceeding 3.7 billion RMB.
Additionally, Deutsche Bank published a research report citing TVB management, stating that this cooperation with Alibaba will help broaden their audience base. The bank mentioned that although specific cooperation plans are still to be disclosed in the next three months, it is believed to be a good start for TVB regardless.
Deutsche Bank believes that TVB has a strong cash flow and dividend record, so it maintains a "Hold" rating with a target price of 44.58 HKD. TVB's stock price fluctuated yesterday; after opening low at 43.7 HKD, it rebounded immediately, reaching a high of 45.1 HKD in the afternoon, and closed at 44.85 HKD, up 1.8%.
