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Analysts say that the future of the film industry lies in the Internet

Tencent, another Internet giant in China, has announced plans to enter the film industry following Alibaba’s latest access to TV and movies by purchasing a controlling stake in the ChinaVision Media Group. Tencent said on June 17 that it would invest in 6 movies this year.

According to Tencent, the Chinese film market is expected to triple or even quadruple. The combination of films and the Internet would not only bring larger box offices, but also create a considerable market for derivative products.

Vice president of Tencent Sun Zhonghuai said that the company’s wide range of social networking systems and very active relation chains with its various platforms (including Wechat) that cover games, videos, media, literature, etc, provide a foundation for derivative products from its film industry. Tencent is considering investment plans in film-related games, literature, music, and relevant virtual or physical products.

Tencent is not the first Internet company to make a foray into the film industry. In March, Alibaba bought a 60 percent controlling stake in ChinaVision for $804 million and renamed it Alibaba Pictures Group Ltd.

Apart from acquisition, Alibaba has also invested in films by launching a product called "Yu Le Bao", or "entertainment treasure", that allows customers to invest in entertainment products.

Baidu, one of the three Internet giants in China, has also entered the film industry. The company reportedly invested in a film company in Los Angeles this February. According to insiders of the industry, Baidu will possibly launch a crowd funding project in film.

The internet’s forays into the film industry has stirred traditional film makers. Many industry insiders take the view that the three Internet giants will also become giants of the film industry.

The article is edited and translated from 騰訊進(jìn)軍電影業(yè)BAT集體“觸電”; Source: The Beijing News