Alibaba Digital Media & Entertainment Diverse Entertainment Platforms with Broad Scale

FAN Luyuan, President of Digital Media & Entertainment

1

September 23-24, 2019 Hangzhou, China

2

[VIDEO]

3

Tapping into the Growing Demand for Entertainment of Chinese Consumers满足中国消费者日益增长的娱乐需求

4

Business Overview

01

业务全景

Business Strategy

02

商业策略

Alibaba Digital Economy Synergy

03

生态协同

5

Business Overview

01

业务全景

Business Strategy

02

商业策略

Alibaba Digital Economy Synergy

03

生态协同

Diverse Entertainment Platforms with Broad Scale

6

Alibaba Digital Economy Consumers

User + Merchant + Industry Insights

Music

Literature

Film

Theatre

Variety Show

Sports

Animation Documentary

Live Concert

Folk Art

TV Series

Exhibition Show

Gaming

Music Concert

规模化多元化的娱乐平台

阿里巴巴数字经济体消费者

用户 + 商家 + 行业洞察

Digital Media and Entertainment Content全娱乐内容

Ordinary People Authentic Hero Evoking PassionPositive Energy

7

· 小人物 · 真英雄 · 正能量 · 大情怀

Premium Content Focused on Four Thematic Pillars致力于四大主题的优质内容

8

June 2018 June 2019

+46%

Paying Subscribers Growth(1)

Note: 1. Increase in number of average daily paying subscribers of Youku from June 2018 to June 2019.

中国领先的长视频平台

Leading Long-Form Video Platform in China

Most Comprehensive Film Infrastructure Service Provider in China

9

TOP 10 Grossing Films in China(1)

(RMB Billion)5.69

4.65

4.66

3.653.403.39

3.10

2.55

2.442.24

Wolf Warrior 2

The Wandering Earth

Ne Zha

Operation Red SeaDetective Chinatown 2

The Mermaid

Monster Hunt 2

Dying to Survive Hello Mr. Billionaire

Monster Hunt

Note: 1. Beacon box office data as of August 31, 2019. Red movies are movies that are co-produced and distributed by Alibaba’s Digital Media and Entertainment segment.

中国电影业最大的基础设施提供者

10

Damai's Concert Tickets Market Share(2)

70%+

Notes: 1. In 2018, according to Analysys. 2. For 2018, Damai sales as a percentage of China’s total concert box office sales (2018 China Performing Arts Market Annual Report, China Association of Performing Arts).

Largest Online Ticketing Platform for Live Events in China(1)

中国现场娱乐行业最大的服务商

11

Business Overview

01

业务全景

Business Strategy

02

商业策略

Alibaba Digital Economy Synergy

03

生态协同

12

FY2018 FY2019 FY2018 FY2019

Licensed

Overall Content Volume by Type（1）

Overall Content Spending by Type（1）

Owned（2）

Licensed

Owned（2）

Notes: 1. Breakdown for Youku's drama and variety shows signed since FY2018, excluding content that costs less than RMB10 mn.2. Ownership represents 50 years of copyright protection under PRC law.

Buy ／ 采买 Build ／ 自建+

Partner ／ 合制

Ways to Obtain Content

Self Produce ／ 自制

From Licensing to Owning Content 从“租赁”模式升级为“产权”模式

13

FY2017 FY2018 FY2019

Exported Content Volume（1）

Note: 1. Content includes drama and variety shows.

+129%

+138%

Create Exportable Content Beyond China优质内容出海

14

Trusted Partner of the Hollywood Big Six in China

IMDb

Points （1）9.1Taopiaopiao

8.4

Best Picture

Best Documentary

Points （2） IMDb

9.3Taopiaopiao

8.2Points （1）

Points （2） IMDb

8.7Taopiaopiao

8.2Points （1）

Points （2）

Notes: 1. Taopiaopiao data as of September 16, 2019. 2. IMDb data as of September 16, 2019.

Jury Prize

首席营销平台Marketing Platform Entertainment Platform

全系列观看

好莱坞六大在中国的最佳合作平台

Best Partner for Films Imported to China 海外影视公司在中国的最佳合作伙伴

15

Address FinancingImprove Cash Flow

Precise Marketing Measurable Results Merchandise

Standardize ProcedureProject Management

Cinema and Venue Management

Improve Operations Decrease Costs

Viewing and Ticketing Platform User Community

Finance Production Distribution Consumer IP Commercialization内容投资 内容制作 宣发推广 消费者决策 影院场馆经营 IP 衍生品

Empower Industry | Provide New Infrastructure for Entertainment Industry产业赋能 | 为文娱行业提供全链路新基础设施

16

100% paying user repurchase rateProduction Companies (1)

400 Represent 38% of movies (2)Movies Served (1)

280 Content

Evaluation System

Feedback, Popularity

Index

Scalable Marketing New Retail + IP

Resource Center

Copyright Protection

Distribution Tools

Beacon App

Beacon Academy

Strategy Development

Resource Allocation

Dynamic Adjustments

Value-added Services

+ +

Notes: 1. Beacon data from June 1, 2018 to August 31, 2019. 2. Out of total films in cinema in China. Data sourced from Beacon from June 1, 2018 to August 31, 2019.

内容评估体系 广告规模投放口碑传播

用户舆情监测宣发热度指数

新零售 + IP

Empower Industry | Smarter Movie Marketing and Distribution产业赋能 | 让电影宣发更智能

Digitization Measurable Results Efficiency Improvement

BEACON

17

国际版海报

Global Version Poster

Case Study

Beacon Transforms Independent Movies into Popular Hits灯塔助力小众电影，打造爆款

Most suitable name based on content与影片内容更契合的片名

Avoid grey and dull color tones

避免使用灰暗和压抑色调

Increase main character portrait size

放大主角的演技和形象

Data Insights数据洞察

Pre-screening Positive Ratings by Viewer Groups

试映会好评率

<25 Age

Before Release Interested Users by Gender

上映前观看意愿

73%

Female Male

27%

55%

>25 Age

<25 Age

>25 Age

45%

38%

36%

Pre-screening Reviews

TOP 1 InspirationalTOP 2 Great MovieTOP 3 Compassionate

试映会观后评价

Female Male

国内版海报

China Version Poster

18

After Premiere, Beacon Provides Real-time Data Insights上映后，灯塔提供实时数据洞察

54 US$ MNChina

6 US$ MNNorth America1.

Box Office(1)

票房

国内版海报

China Version Poster

Case Study

Beacon Transforms Independent Movies into Popular Hits灯塔助力小众电影，打造爆款

Note: 1. Box office data from Box Office Mojo.

19

Fenghuang Yunzhi（1）

3,500 Maizuo（1）

600 + +

Note: 1. Number of contracted cinemas and venues as of June 30, 2019.

Cinemas on Venues on

Stable Ticketing System稳定的票务系统

Data Analysis and Insight可视化数据服务

Operational Management System经营管理系统

Empower Industry | Smarter Cinema and Venue Management Systems产业赋能 | 让影院场馆经营更智能

Smart Cinema Management Platform

Smart Venue Management Platform

MaizuoFenghuang YunzhiDynamic Pricing

Advertisement

Pipeline Marketing

Site

Official Website

Member

Product Ticketing Smart Hardware

Headquarter

Channel

20

Business Overview

01

业务全景

Business Strategy

02

商业策略

Alibaba Digital Economy Synergy

03

生态协同

Notes: 1. Overlapping consumers means Youku paying subscribers who are also consumers of Alibaba's China retail marketplaces. For the twelve months ended on June 30, 2019, overlapping consumers spent 2.1x more than China retail marketplaces consumers who are not Youku paying subscribers.2. Overlapping consumers as a percent of Alibaba’s China retail marketplaces consumers for the twelve months ended on June 30, 2019. 21

Alibaba’s China Retail Marketplaces(1)Alibaba’s China Retail Marketplaces

of Alibaba’s China Retail Marketplaces’ Consumers are Youku Paying Subscriber

× 12Youku

Paying Subscribers

2.1 %Overlapping consumers buy more on

阿里巴巴中国零售平台 优酷付费会员重叠用户在阿里巴巴中国零售平台的购买力更强

A Marketing Channel for Alibaba Digital Economy文娱业务成为阿里经济体商家精准营销的阵地

重叠用户占比阿里巴巴中国零售平台年度活跃买家

MovieVariety Show

Live Show

TV Series

…

…

New Retail Merchant

Brand

E-commerceLocal

Service

Channel(2)

22

Fliggy: Increase in ticket sales Xi’an’s Chang Hen Ge 64%(4)Ele.me: Beijing Lamb

Soup Orders Increased by 180%(1)

Eat Travel

Shuqi Novel: Increase in eBooks Readership 610%(2)

Read

Xiami Music: Clicks of trial OST 5.8mn(3)

Listen

Notes: 1. The Longest Day in Chang’an was released on June 27, 2019. Increase in orders of Beijing Lamb Soup was calculated by comparing number of orders between June 18 and June 26, 2019 with number of orders between June 27 and July 5, 2019. 2. The peak number of times the ebook of “The Longest Day in Chang’an” was read on the Shuqi app in July 2019 divided by the average number of daily unique readers of the ebook in June 2019. 3. Xiami data as of August 31, 2019. 4. The increase in Chang Hen Ge ticket sales was calculated by comparing average daily sales from June 14 to June 20, 2019 with the average daily sales from June 28 to July 4, 2019.

食在十二时辰 读在十二时辰 乐在十二时辰 游在十二时辰Case Study

The Longest Day in Chang'anRelevant Content Drives More Consumption in the Alibaba Digital Economy

头部IP价值带来的集团生态共赢

23

Performances and competitions build branding across the country

Sign top performers and continue to develop existing talents License 10 brands Online and offline dance classesThe combination of show and fans

creates other monetization opportunities

Online to Offline

Content to Talent

Short Term to Full Year

Merchandise to Cultural Consumption

线上到线下 短期到全年 节目到艺人 商品消费到文化消费Case Study

Street Dance of China 2Value Leveraged Across the Entire Digital Media and Entertainment Platform全文娱业态协同

24

Diverse Entertainment Platforms with Broad Scale规模化多元化的娱乐平台

25