Alibaba Group'S Three New Growth Models

Recently,

The group rose 0.18% in the NYSE, closing at $104.64, or about $266 billion 413 million.

Alibaba has reached Asia's top.

The company has the highest market value.

Ten years layout, from the core

To pay and finance, big data cloud computing, big entertainment, intelligent logistics network...

Bid farewell to a single electricity supplier positioning, Alibaba is looking for new growth direction.

A few days ago, Youku potatoes + Sina micro-blog +UC/UC headlines launched the major league, will open up the three Ali content platform, build Ali content ecology.

Once again playing the role of Ali traffic resources at the same time, it is Ali's own new growth model to reflect.

Resources in series

Ali recently disclosed that members of micro-blog's top management team purchased 3 million shares of micro-blog shares held by the latter. After the completion of the paction, Ali's shareholding of micro-blog will increase from 30.1% to 31.5%.

On the following day, the new content was released immediately after the content board of Ali system. Youku potatoes and Sina micro-blog and UC/UC headlines will jointly launch the content circulation combination -- video entertainment alliance.

According to the introduction, the alliance will enhance the user experience through the low-level data and algorithm docking, relying on the three platforms of high-quality content, social communication, algorithm recommendation and mobile reading ability.

Yang Weidong, President of oneness group (Youku potato), said that the content industry started with three core competencies around content, distribution and realisation. Good content is the fundamental attraction to users; good distribution is the guarantee for effective arrival of users; good business realisation mode is a means to ensure healthy circulation of content.

Combining the three forces, we can achieve the best combination of content dissemination: obtaining the recommendation or retrieval of content media platforms, fermenting and spreading topics on social media platforms, and recommending and rapidly spreading algorithms on mobile reading platforms.

The establishment of the video entertainment alliance will also help to achieve interoperability in the five dimensions of content, interaction, relationships, accounts and data in the Ali system.

Content includes the broadcast and jump of content, and the output of content. Interaction includes content generated data, such as user point praise, comment feed will be displayed synchronously; relational links include content subscription relationship to open up, synchronize on the three party platform; account links include three party accounts to open up, one account can log on to three platforms; data link includes algorithm logic behind the synchronization of cue based on user consumption content.

Integrated demand

According to the two quarter earnings report released by Ali in 2016, the quarterly revenue of Ali digital media and entertainment business was 3 billion 135 million yuan, up 286% from 812 million yuan in the same period in 2015.

Ali cloud has also maintained three consecutive quarters of three digit growth.

Electricity providers, cloud computing and entertainment in three parts have become the driving force for Ali's growth.

Alibaba CEO Zhang Yong said, "Ali is gradually realizing the concept of" living in Alibaba ", and Ali is not only a basic provider of business, but what Ali wants to do is to provide a comprehensive infrastructure for online life.

In June this year, Ali set up the "Alibaba entertainment section."

The sector includes Ali pictures, syncretic group, Ali music, Ali sports, UC, Ali games, Ali literature, and digital entertainment division of Alibaba group.

Yu Yongfu, the leader of the leading group, said that the next step is to reduce "brush face", reduce duplication of construction and increase resource sharing.

This matrix is forming a more harmonious relationship after continuous integration of resources.

According to the introduction, the future planning of the video entertainment alliance is not only confined to the circulation of content, but will also be aimed at the contents of the head, homemade content, PGC, even stars and enterprises, and provide product synergy from joint investment, joint production to joint declaration and joint marketing.

Industry analyst Zhao Ying believes that at present, although there are many resources in the entertainment sector of Ali, it needs further integration to make the business more flexible and more cooperative.

It can be seen that Ali will gradually expand its business by integrating capital operation and internal incubation.

Flow supplement

After the capital operation of Youku potatoes, UC and micro-blog, Ali also laid its own e-commerce resources to these content media platforms.

For example, after becoming a shareholder in micro-blog, 2013 increased micro-blog advertising revenue by 97 million US dollars over last year, and 4913.5 million from Ali.

In 2014, micro-blog's advertising and marketing revenue amounted to $264 million, and Ali contributed $107 million.

Last year, micro-blog's revenue from Ali dropped to 35.5%, but it still contributed $143 million in revenue.

Some analysts believe that Ali will greatly enhance their effectiveness by guiding their advertising and user data to these content platforms.

Such a traffic conversion also allows itself a huge demand for funds content platform has grown more room for growth.

However, Zhao Ying stressed that "the three carriages of content ecology will actually become the source of blood for Ali".

She believes that traffic from UC, Youku potatoes and micro-blog will also add huge traffic to Ali through its account.

In particular, when member consumption, ticket purchase, content consumption and other aspects of Ali's trading system get through, Ali will stick to the field of mobile payment so as to revitalize the role of traffic.

With the changing age of consumers, new consumption concepts and methods are emerging. Shelf style is no longer enough to meet the needs of the younger generation.

Video, live, community and other media platforms have gradually contributed to the emergence of new consumption patterns. Ali may need to seize the development prospect of content ecology on the one hand, and consolidate the the Great Wall of electricity providers on the other hand.