According to foreign media reports, Alibaba officially launched a paid streaming media video service "TBO" on the specific model of Tmall Box on September 3, which is called "Tmall Box Office" ("Tmall Box Office") and provides users with Domestic and foreign films, television dramas.
Alibaba will purchase content from China and other countries, and will also produce content on its own, providing users with Ali set-top boxes and smart TVs. Unlike most domestic competitors, about 90% of TBO's content needs to be paid to be viewed, either monthly, or purchased in episodes, and the remaining 10% is free. The monthly subscription price is 39 yuan, and the annual subscription fee of 365 yuan is the same as the cable TV (current cable television costs range from 320 yuan to 450 yuan), but it supports Alipay payment.
As early as June of this year, Ali indicated that he would launch this business. Liu Chunning said at the time: "Our mission, and Alibaba's mission, is to redefine home entertainment. Our goal is to become a service similar to HBO and Netflix in the United States."
Industry insiders pointed out that the launch of TBO will make the Chinese online video market more competitive. Alibaba’s major competitors in video services include Tencent video, iQiyi, Sohu video, and LeTV.
The free mode of domestic video websites has been running for as long as 10 years, dating back to the video sites in 2007 and 2008, like Potato, Youku, and YouTube. YouTube has been acquired, and Tudou and Youku have been struggling for many years. The current profit model is not clear. Video sites burn money mainly because of the high cost of the server and the high cost of copyright. They paid a high price for the user's free behavior. They can't get out now, because the user has been developed into a non-payment "bad" in the past 10 years. habit".
Ali's move is intended to change the user's "Internet should have been free to watch movies" idea, reshape the market environment, and cultivate users to spend money to watch habits.
For instance, when the Tomb Raider notes were released, the iQiyi membership system was more successful in marketing. Paying did not have to wait for the long update period. Many fans of the novel would be willing to spend money.
The 360 ​​and Rayvision 360 network theaters' strategy in exploring video payment also has its own characteristics. It is only for movie types. Many domestic small-cost, non-luxury line-up movies cannot usually be connected to the cinema line, and the content of the light is 360. The traffic entrance gives this long tail sales a great advantage.
Even with the above exploration, the realization of the video content itself still feels a long way to go. With TBO letting users pocket out, they should bet on better quality video content.
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