Alibaba is conducting a strategic review of its video streaming platforms, Youku and Tudou.
- One option being considered is injecting the assets into Alibaba Pictures Group to expand its business scope.
- The review is part of Alibaba’s larger restructuring plan to drive growth and create stand-alone leaders in various businesses.
- Youku competes with Baidu’s iQiyi and Tencent Holdings in China’s video streaming market.
- iQiyi has shifted its focus to quality content and boosting subscriptions to reverse years of losses.
- Alibaba may explore other options such as separate listings for the video platforms or no deal at all.
- Alibaba Pictures is involved in content production, distribution, and cinema ticketing management.
- Alibaba’s digital media and entertainment business narrowed its losses in Q1 2023, thanks to investments in content and production capability by Youku.