From Ecommerce to Entertainment – A Synergistic ViewYu Yongfu

Chairman and CEO, Alibaba Digital Media & Entertainment GroupChairman and CEO, Alibaba Pictures

Ourevolvingentertainmentbusiness

2014 2015 2016 2017

UCWebOct/14

AlibabaPicturesAcquiredinJun/14

AlibabaMusicLaunchedinJul/15

YoukuTudouAcquiredinApr/16

AlibabaDigitalMedia&EntertainmentGroupEstablishedinOct/16

DamaiAcquiredinMar/17

2018

Health+HappinessstrategyintroducedbyJackMa

AcquiredinJun/14

HAVEFUNLightuppeople’sliveswithjoy

Commercialization

Content Consumer

ThreeCornerstonesofourBusinessSuccess

Live@Alibaba

Consumer

Youku Tudou TmallTV AlibabaPictures* UCWeb AlibabaMusic AlibabaGaming AlibabaLiterature

*AlibabaPicturesisanaffiliatedentity.

BringingnewusersandnewdatasetsofChineseconsumerstotheAlibabaecosystem

Ecommerce

500+MMMAU*

Datasource:AlibabaGroup.*EcommerceMAUdenotesChinaretailmarketplacesMAUinMarch2017.EntertainmentMAUdenotestheglobalMAUinMarch2017.**TaoPiaoPiaoisanaffiliatedentity.

Consumer

Entertainment

500+MMMAU*

**

Exclusivebroadcastof2016SinglesDayonYoukuCreateafunshoppingexperiencewhiletappingintoYouku’svastreachtodrivesales

Consumer

Cross-platformmembershipreferral• TrialYoukumembershipwithTmallpromotion• CashrebateonTmallwithYoukusubscription

Consumer

Youku’soriginalcontentcreatedforTmallExclusiveYoukucontentsponsoredbyTmallandTmallmerchants

Consumer

Our media matrix enables a multi-faceted understanding of consumers

Consumer

*

*TaoPiaoPiaoandAlipayareaffiliatedentities.

*

UCBrowser

No.1inIndiaandIndonesia

UChassuccessfullytransitionedfrommobilebrowsertodata-drivennewsfeedmediaUCHeadlineshasover200millionMAUglobally

Datasource:AlibabaGroup,asofApril2017.RankingdataderivedfromiOSStoreandGooglePlayStorerankings.

Consumer

TopnewsfeedmediainChina

UCHeadlines(Chinaversion)

UCHeadlines(Intlversion)

UChasgainedastrongfootholdinfast-growingmarkets

10millionMAUinRussia

China’sfirstmobilebrowser

57%marketshareinIndia

47%marketshareinIndonesia

27%marketshareinPakistan

18%marketshareinEthiopia

12%marketshareinNigeria

7%marketshareinVietnam

SouthAfrica

Italy

Germany

SaudiArabia

Brazil

USA

Canada

No.1mobilebrowserToprankingapp

IndonesiaIndia

Datasource:StatCounter(basedonpageviewmarketshareasofApril2017),AppAnnie.

Consumer

Ouroriginaldramaseriesareenormouslypopular

Datasource:AlibabaGroupandLuthResearchonNetflixviewership.

3millionviewersperepisode

Content

20millionviewersperepisode

Acomprehensivemediagroupthatdistributescreativepropertiesacrossplatformstomaximizevalue

News&Information

Novels&Literature

Originalcontent

Music

Movies

LiveEvents

Merchandising

Gaming Short-formvideo

UCHeadlines

AlibabaLiterature

Youku

AlibabaMusic

AlibabaPictures*

Damai

Tmall

AlibabaGaming

Tudou

*AlibabaPicturesisanaffiliatedentity.

Content

YoukuOnlinedistribution&licensing

Taobao&TmallMerchandizingTheatricalmovie

AlibabaPictures**

TaoPiaoPiao**Moviedistribution&ticketing

Yulebao**Crowd-funding

Multi-channeldistributionandvaluecreation

RMB300M+GMV

Datasource:AlibabaGroup,endofMarchtoMay2017.**AlibabaPictures,TaoPiaoPiaoandYulebaoareouraffiliatedentities.

Content

AlibabaPictures*:buildingthebridgebetweentheUSandtheChinesefilmindustries

US$64M

USboxoffice

US$88M

Chinaboxoffice

AnAmblinFilm

Datasource:Boxofficemojo(asubsidiaryofimDB)forUSboxoffice;EntgroupIncforChinaboxoffice.*AlibabaPicturesisanaffiliatedentity.

Content

Digitalplatforms+DatatechnologyCreatenewspaceforgrowthandreengineerthevaluechain

Content

TaoPiaoPiao*

Top2movieticketingservice• 80%ofallmovieticketsaresoldonlineinChina,versus~30%intheUS• Transitionfromticketingservicetomedia• Data-drivenmarketinganddistribution

Datasource:AlibabaDMEmanagementestimates.ChinamarketdataisfromindustryreportspublishedbytheNationalPressandPublicationBureauofRadioandTelevision.USmarketdataisfromindustryexpertsandAlibabaDMEmanagementestimates.*TaoPiaoPiaoisanaffiliatedentity.

Content

类别1 类别2

US$7B

US$29B

China US

Estimated2016liveperformancemarket Damaiiswell-positionedto

capturetheuntappedpotentialforliveperformanceinChina

Ticketsforover4,000eventsand900venuessoldperday

Datasource:AlibabaGroup,asofMay2017.ChinesemarketdataisfromthePerformingArtsAssociationofChina.USmarketdataisacombinedstatisticfromPwCGlobalMedia&EntertainmentOutlook,TheBroadwayLeague,andPwCSportsOutlook.

Content

Commercialization

Uni-marketing PaidSubscription Merchandizing

Commercialization

Mediamatrix=BroaderreachtoconsumersDatamatrix=MorediversifiedandprecisetargetingUniIdentity=Moreeffectiveclosed-loopmarketing

Commercialization

6,000,000

7,750,000

9,500,000

11,250,000

13,000,000

Aug-16 Dec-16 Mar-17

Youkuhasseenrapidgrowthinpaidsubscriptionsoverthepastquarters

2016Q3 2017Q1

Commercialization

Datasource:AlibabaGroup.

类别1类别1

Boxoffice

Aftermarket

Boxoffice

OnlinedistributionOnlinemerchandising

AlibabaTraditional

Movies

类别1类别1

Cabledistribution

OnlinedistributionMovieremake

Onlinedistribution

AlibabaTraditional

TVDramas

OnlinemerchandisingMusical/Playremake

Generatingmultiplerevenuestreamsthroughcross-platformmonetization

*AlibabaPicturesandTaoPiaoPiaoareouraffiliatedentities.

Commercialization

*

*

*

toEntertainment• Ourentertainmentbusinesscomplementse-commercebusinesswithnewconsumersandnewdatasets

• Ourdigitalsolutionsanddatatechnologyarethenewinfrastructurefortheindustry

• MaximizevalueofthecreativepropertiesbyleveragingmultiplemediaassetsacrossAlibabaGroup

FromEcommerce