Netflix, a US company that allows consumers to stream videos live via their Internet, has been trying to enter into the Chinese market. They see an opening for the types of services they offer, and more than likely they would have made a great success in China. However, Alibaba, anticipating the move of the US company, made their own version of Netflix called Tmall Box Office video-streaming service. Thus, giving Chinese consumers something that they may have been wanting without letting Netflix enter into the market.
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The Tmall Box Office (TBO) was rolled out on Tuesday of this week as an update to the Alibaba’s Smart TV operating system consumers already had.
Competing with Netflix
TBO was meant as the main way to compete with Netflix. This company has been investing into markets throughout the globe, making Netflix a common house name just about anywhere that a person would go. The company was trying to enter into the Chinese market, but were shopping around for a partner to help them enter into the market legally. It seems that Alibaba saw the chance to make even more business and jumped on it.
Obstacles faced by TBO
Though TBO may be filling a gap that many consumers were aware of when it comes to the market of entertainment, there are still some obstacles that TBO is going to have to face in order to find true success on the market. For one, there is some stiff competition in this ream of services. There is iQiyi and Youku Tudo that TBO will be competing directly against. In addition, they are going to have issues with getting the right licenses to show films, as there are very strict regulations in China when dealing with these types of licenses.
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So will TBO be a success in China? Will it become the Netflix of China? This is something that only time will tell. However, since TBO does have Alibaba backing it, chances are it is going to make an impression on the Chinese market. After all, everything Alibaba touches seems to turn to gold and become very popular.