Taobao targets TV shopping via JV
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Taobao.com and Wasu Online, a Zhejiang-based digital TV network operator, will invest 100 million yuan (US$14.6 million) in a TV shopping joint venture which was launched Tuesday.
The venture, Wasu Taobao Digital Technology Co, will operate the platform that combines Taobao's online shopping resources which will enable Taobao to expand e-commerce to TV viewers. Digital TV users in Hangzhou will now be able to choose from more than 3,000 products on the platform. Transaction and payment procedures will be completed on Wasu TV's interactive platform, with the products available on Taobao's C2C platform.
The service will be expanded to customers around the country.
"It's a good opportunity for Taobao and Wasu as the State Council has just announced plans to converge broadcasting, telecommunications and Internet," said Ma Yun, chairman and CEO of Alibaba Group.
The venture also launched a new Website for online video and TV programs.
Taobao.com will offer over 4,000 movies and 20,000 episodes of TV programs to users on request and around 90 percent of them will be free.
"The new company with Wasu means a broader customer base through the broadcasting network with potential to lure mobile Internet users, PC users as well as TV watchers," said Chen Shousong, an analyst at Beijing-based Analysys International.
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