Alibaba Group Holding Ltd (NYSE:BABA) is ready to make a plunge in the content business. The company is in talks with Hollywood content producers to buy content to stream in China. If Jack Ma gets success in content back in China, the company will soon be landing in the US to challenge major streaming giants. In a program on Bloomberg, UCLA Visiting Assistant Professor, Christopher Spicer, said that deal between Hollywood and Alibaba Group Holding Ltd (NYSE:BABA) is a huge development and can turn the course of content in the markets. He said that Alibaba has already a well-established online platform. The company wanted to expand the platform and content is the best way to make this expansion. Spicer said that center of content is Hollywood and Alibaba Group Holding Ltd (NYSE:BABA) is doing the right thing to target the main hub of quality content.
DVD piracy is on its peak in China. Movies go out in the market even before their official launch in theaters. There is a scarce demand of online streaming because people either download movies and content from torrent websites or buy DVD. Spicer said that DVD piracy is an issue in China, but there will be a viable market growth in online streaming within next three to five years. He said that the government of China might crackdown in content piracy. Alibaba Group Holding Ltd (NYSE:BABA) ‘s CEO Jack Ma will need to sort out the market hurdles before making any decision in China regarding content.
Recently, China closed streaming of Big Bang Theory, a famous TV show, which got above 200 million viewership in China. Still, Spicer said that streaming business will flourish in China under Jack Ma because he has got the position to lead in China. He said that there is a larger portion of the market in which is still untapped. This will give Alibaba Group Holding Ltd (NYSE:BABA) to teem the sleeping market.