Alibaba Pictures expects a net loss of more than 900 million yuan in 2016, with large marketing expenditures

on the evening of February 17, Alibaba Pictures announced that it would record a net loss of between 950 million yuan and 1 billion yuan in 2016. the main factor affecting the group's overall profitability in 2016 is the marketing expenses invested by Taobaopiao (the group's online ticketing platform) to gain more market share.

on the evening of February 17, Alibaba Pictures announced that it would record a net loss of 950 million yuan to 1 billion yuan in 2016. the main factor affecting the group's overall profitability in 2016 is the marketing expenses invested by Taobaopiao (the group's online ticketing platform) to gain more market share.

it is worth noting that based on the continuous investment of resources to Taobaopiao to implement targeted market strategies, Alibaba Pictures has helped Amoy further enhance its market position by the end of 2016.

in the past two years, Internet companies have entered the film field and have chosen online ticketing as a breakthrough. All parties have invested a lot of resources and capital, and the subsidies of several major online ticketing platforms amount to hundreds of millions of yuan. it has made a great change to the traditional movie user channel. Two years ago, the proportion of online ticket sales in the domestic film market was less than 50%, a proportion that has been rising over the past two years. During the Spring Festival this year, the overall proportion of online ticket sales has exceeded 83%, and the proportion of online ticket sales of some popular films has reached 90%.

according to industry data, comprehensive data from more than a dozen cinemas in China show that by the Spring Festival in 2017, the market share of Amoy tickets has continued a strong upward trend in the past year, and has been caught in a personal fight with cat's eye movies. The data of the above two online ticketing platforms have occupied more than 60% of the domestic online ticketing market.

Market participants pointed out that in the future, the competition in the field of online ticketing will mainly be carried out between Maoyan and Taobaopiao, which not only tests the hard strength of both sides, such as technology and operation, but also depends on which party has more resources. Higher efficiency and stronger determination, "it is expected that this battle will be resolved in 2-3 years."

Ali Pictures said that the Internet publicity business with Taobaopiao as the core is a strategic investment, and the company will fully support the development of Taobaopiao, and will continue to increase investment in the future to strengthen the offensive formation of Taobaopiao, "to ensure that Taobaopiao has industry-leading competitiveness in technology, talent, capital and other aspects."

at the end of 2015, Alibaba Pictures acquired Taobao film business from Alibaba Group. after business integration, Taobao film has become an important part of Alibaba Pictures' Internet promotion system. In May last year, Alibaba Pictures officially renamed Taobao Film to Taobaopiao, announcing that Taobaopiao had received 1.7 billion yuan A round of financing, led by CDH Investments, Ant Financial Services Group and Sina. Hehe Pictures, Boehner Pictures, Huatze Film and Television, Southern Pan Entertainment, Lianrui Pictures and other institutions participated. After the completion of the financing, the valuation of Taobao films has reached 13.7 billion yuan.

behind Cat's Eye is Meituan-Dianping + Light Media. According to the recent announcement by Light Media, Cat's Eye lost 34.05 million yuan in the first three quarters of 2016.

according to industry insiders, Taobaopiao has more than 10 billion yuan in cash reserves, coupled with the completion of round A financing of 1.7 billion yuan last year, attack will become the main strategy this year.

Yien is sorted out and released according to the relevant reports of Tencent Technology and the Daily Economic News.

Edit: nancy