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Chinese TV Station DragonTV Partners with Alibaba to Create New Business Models

Chinese TV Station DragonTV Partners with Alibaba to Create New Business Models

by Tracey Xiang – Jun 12, 2014

DragonTV, a Shanghai-based Chinese TV station, announced earlier this week a partnership with Alibaba Group that will leverage the Internet-based services of the latter, from online marketplace to financial products, to create new business models.

DragonTV has registered some of its most popular TV programs with Yulebao, a mutual fund for Alibaba users. Two months ago Alibaba rolled out Yulebao that was created on top of Yuebao.

Yuebao was one of the biggest things in China last year that had had about 50 million Alibaba users bought the mutual fund operated by THFund, the mutual fund company Alibaba bought a controlling stake in, in half a year since launch. Yulebao is a similar fund that the funding is supposed to be used for the production of certain entertainment or other cultural products — the first two Chinese characters Yu Le means entertainment.

It’s not that the TV station needs funding but they think it’s more of a loyalty program. Yelebao itself has come up with some offerings to encourage audiences to invest in certain movies or programs; for instance, meetup with movie crew, exclusive movie premiere, visit to movie/program production companies, and so on. DragonTV thinks, by changing them into investors, audiences will be more engaged and loyal to certain programs. The TV station thinks eventually they’ll be able to take advantage of this Fans Economy, as reported by 21cbn.

While increasingly more users are watch TV programs through online video sites, DragonTV has realized that TV channels operated by TV stations don’t make any sense to those users anymore. So another reason it partners with Alibaba is it hopes to have its own programs on the home screen of set-top boxes or other hardware products or operating systems by the Chinese Internet giant.

Alibaba will also develop a mobile game based on a program by DragonTV that will air soon.

An Online Game Created Based on One of China’s Most Popular TV Shows in 2013

 

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About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

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