Chinese internet giant Alibaba Group Holding Ltd BABA made history last week after its "Green Book" film won the Oscar for Best Picture. Now the company is looking to capitalize on recent momentum by producing more Hollywood movies, according to co-founder and executive vice chairman Joe Tsai.
What Happened
Alibaba served as a co-financier of "Green Book," and the company is looking to continue investing in "quality productions," Tsai said during an interview with Bloomberg's Emily Chang on "Bloomberg Technology."
The company's financial involvement in Hollywood production also extends to China, as "Green Book" will make its domestic debut on March 1 in that country and Alibaba will sell tickets on its e-commerce platforms.
Why It's Important
It is unclear if the topic of movies is part of ongoing U.S.-China trade talks, but Tsai said the general trend in China is one of more openness to American content, including movies. This is important for American content makers looking to crack the Chinese market, which is somewhat restrictive in what it allows but is also poised to become the world's largest market in terms of box office sales.
What's Next
It remains to be seen if low-budget movies like "Green Book" can find critical success in the large Chinese market, according to Reuters.
The Chinese market has proven to be more interested in big-budget blockbusters like "Transformers" and "Fast and Furious 8," which earned 2.67 billion yuan ($400 million) in 2017. By comparison, some estimates suggest "Green Book" could reach just 300 million yuan — and this assumes it will perform well in third- and fourth-tier cities.
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