Alibaba Pictures announced a three-year agreement to cooperate closely with parent Alibaba Group in the production, distribution and marketing of its films, doubling down on its own IP at a time when strict capital regulations and a softening movie market have created roadblocks for some of the country’s biggest and most ambitious entertainment companies.
According to a letter Alibaba Pictures CEO Yu Yongfu sent to employees, Alibaba Pictures and Alibaba Group will have “in-depth cooperation on the related rights of the film and television content that each party possesses.” Alibaba Group includes a literature and gaming division as well as streaming service Youku Tudou, one of the country’s leading over-the-top providers in one of the few places where Netflix does not operate.