Alibaba is looking to expand its entertainment division by allotting a serious amount of money within a time frame of 3 years.
According to Reuters, Alibaba's chief executive of Digital Media & Entertainment Group Yu Yongfu said in an internal email that the company will invest more than RMB 50B ($7.2B) in content over the next three years.
Yongfu added that he "didn't come to play" according to the message reported by the news outlet.
The news comes after the Chinese e-commerce giant consolidated its entertainment group in October of this year. The division, officially called as Alibaba Digital Media & Entertainment Group, include the video site Youku Todou, streaming channel Alibaba Music, Alibaba gaming, mobile browser UCWeb, Alibaba Literature and Alibaba Pictures.
Deadline reported at that time that the company is eyeing to create a complimentary fund of more than RMB 10B ($1.5B) to be invested on the fast-growing digital media and entertainment sectors.
At this point, it's unclear whether the newly disclosed figure will include the complimentary fund planned from late October. The company has not yet issued a comment about the matter.
Following his appointment as CEO, Yongfu wrote an email to his employees where he explained that the company's aim is not to become a film and television production company "in the traditional sense." He also acknowledged that while the "reality is tough," he's hopeful that the company's future will be "so bright."
"The domestic film and television industry, following three years of savage growth, is entering a phase-out and upgrade cycle," Yongfu said, predicting contraction in the Chinese market.
"A great number of film and television production companies will be opting out or will be edged out of the market next year. ... It is both a challenge for film and TV adventurers and an opportunity for entrepreneurs... The market needs a hard-nosed film and television production company instead of an adventurer with tremendously abundant resources."
Founded in Hangzhou China by Jack Ma in 1999, Alibaba is now considered as the fastest growing e-commerce in the industry. In 2015, it was able to hit a total of $462 billion (3 trillion yuan) in online transactions.
