Alibaba Strikes Content Deal with Disney, Shares Up 2.4%

Venture Beat said that the DisneyLife system is a strategic move, especially to Disney, as the company faces the typical market barriers any foreign TV network encounters when entering China. In October, Alibaba bought Youku Tudou, a YouTube-like video streaming service in China, and in June Alibaba announced Tmall Box Office, an online streaming service akin to Netflix (NFLX – Get Report). The initial cost will also include a one-year subscription to the new streaming service, which is called DisneyLife.

Extending its drive into the Chinese media, ecommerce giant Alibaba Holding Ltd (NASDAQ:BABA)announced today a multi-year deal with American media giant Walt Disney Co (NYSE:DIS) that will bring exclusive Disney content with a unique over the top (OTT) forChinese audience.

Streaming media devices are just starting to gain traction in China, and Disney is likely betting on one of their own to help increase profits beyond the standard movie release in theaters. All of the content to be included in the contract is being offered in China via Wasu Media, a company of which Alibaba owns twenty percent, which is headed by the billionaire Jack Ma and Disney.

The movie streaming service will be accessed via a Mickey Mouse themed gadget that will connect to TV’s via the Internet. Subscribers can also buy Disney merchandise, plan a visit to Disneyland in Hong Kong and Shanghai Disney Resort when it opens in 2016 what’s more users can access other Alibaba products and services through the device as part of synergistic cross promotion.

Luke Kang, managing director of The Walt Disney Co in China, said: “Disney and Alibaba share an ambition to exceed our audience’s expectations”. On Monday, the company confirmed the acquisition of Hong Kong’s leading English newspaper, South China Morning Post, in a bid to expand presence in South Asia.