Showing posts with label Alibaba Pictures. Show all posts
Showing posts with label Alibaba Pictures. Show all posts

Tuesday, June 06, 2017

Does Alibaba's merchandise deal with Pokemon makes sense? - Shaun Rein/Jeffrey Towson

Shaun Rein
Alibaba Pictures has expanded its merchandise market with a new deal for the successful Japanese Pokemon. But experts differ on the question such a more makes sense for Alibaba Pictures. A diversion from its core business, says business analyst Shaun Rein. But Beidu business professor Jeffrey Towson lauds the effort for a comprehensive approach of the total value chain, he tells the 6th Tone. 

The Sixth Tone:
Alibaba Pictures estimated that the total sales of licensed Pokémon products on Tmall will surpass 20 million yuan ($2.9 million) in 2017. 
However, the move might be “dangerous” for Pokémon because collaborating with Alibaba means they will give away the power over quality control in China, Rein said. If manufacturers produce poor-quality products, consumers will naturally associate the bad quality with Pokémon, he added. 
Whether the strategy will bode well for Alibaba Pictures’ overall business development also remains a question. The deal is the film company’s latest expansion into licensing after suffering economic losses amounting to 976 million yuan last year. Alibaba Pictures has established partnerships with several foreign companies such as the classic arcade game “Pac-Man” and the American animated television series “The Powerpuff Girls” to sell licensed merchandise on its e-commerce platforms. 
Jeffrey Towson
For a company whose core business is movie production and distribution, tapping into licensing might prove distracting, Rein said. 
But Jeffrey Towson, a professor of investment at Peking University, regards the move as part of Alibaba’s strategy to build an integrated online and offline marketing capability across the entire entertainment value chain. 
“They have Tmall, [e-commerce platform] Taobao, [video-platform] Youku, and so on, and they can push not just movies, but also merchandise, online streaming, and other derivative products,” Towson told Sixth Tone. The movie arm “is becoming a data-driven movie studio with a unique suite of integrated marketing capabilities,” he added. “It’s basically what you would get if Amazon and Walt Disney had a baby.” 
With all the data collected from consumers across Alibaba’s myriad online services, the e-commerce giant is becoming the “must-have partner” to content companies in China and around the world who hope to succeed in the Chinese entertainment industry, said Towson.
More at the Sixth Tone. 

Shaun Rein and Jeffrey Towson are speakers at the China Speakers Bureau. Do you need them at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.  

Friday, March 10, 2017

How Alibaba Pictures gets an advantage with big data - Jeffrey Towson

Jeffrey Towson
Alibaba is pushing into the entertainment industry. The internet giant has one huge advantage, traditional filmmakers can only dream of, says business professor Jeffrey Towson in the Nikkei Asia Review. "Alibaba is attempting to create a new type of smart production that replaces "big bets" with "big data"."

Jeffrey Towson:
Alibaba Pictures' cinemas naturally show a mix of the company's own films and ones from other domestic and foreign studios. Cofinancing and equity partnerships can play a role in this, as seen in the company's investment in Paramount Pictures' last "Mission Impossible" movie. Such partnerships are important because getting to international levels of quality has proved to be more difficult for Chinese studios than expected. 
Yet Alibaba Pictures is also making unconventional moves in distribution. With its Tao Piaopiao movie ticketing app, the company is subsidizing pre-release purchases. This gives it a two-week advance window to gauge interest in specific films and insight into what Chinese consumers actually want to see. The ticketing app in turn is linked to Alibaba Pictures' theater operations software, which is in use at some 70% of local cinemas for ticket sales, screen booking and other functions, further expanding the company's data gathering. 
Add to this distribution channels controlled by Alibaba Group, such as the Youku Tudou video streaming sites, the growing Alibaba Cloud computing service and UCWeb, a popular internet browser for mobile phones. In this way, Alibaba can see what hundreds of millions of Chinese consumers are buying and watching in real time. Compare that to to a typical film studio, which spends 1-2 years making a movie based mostly on a gut feeling and then hopes it will do well if there is a large marketing budget behind it. Alibaba is attempting to create a new type of smart production that replaces "big bets" with "big data".
Jeffrey Towson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on innovation? Do check out this list