Chinese web large Tencent mentioned Thursday it had purchased some belongings of struggling Asian streaming service Iflix, in a serious growth of its on-line video presence in the area.
Western corporations, led by Netflix, dominate streaming globally however corporations from the world’s quantity two financial system have been taking tentative steps exterior their dwelling market just lately.
Tencent mentioned it had bought the “content, technology and resources” of Malaysia-headquartered Iflix, which operates in 13 markets in South and Southeast Asia.
“This is in line with our strategy to expand our international streaming platform, WeTV, across Southeast Asia and provide users with international, local and original high-quality content,” the corporate mentioned in an announcement.
The firm didn’t reveal the worth of the deal however leisure outlet Variety mentioned it was price “several tens of millions of dollars”, citing sources conversant in the settlement.
The vary of content material on Iflix consists of many unique reveals catered for native audiences. It provides away some content material totally free whereas earning profits from advertisements, whereas additionally providing a subscription-based premium service.
The firm, launched in 2015, was reportedly poised for an IPO in Australia however ditched the plans after the coronavirus pandemic sparked turmoil in inventory markets internationally.
It was then compelled to hunt bids from different corporations, Variety reported.
Tencent is without doubt one of the world’s largest on-line gaming corporations, however has been looking for to broaden into new areas.
It launched its first abroad video streaming service in Thailand final yr however the Iflix buy is a far greater transfer.
A serious competitor at dwelling, Baidu-controlled iQiyi, has additionally began increasing in Asia however has solely taken small steps thus far.
Tencent reported in May a pointy rise in first-quarter internet revenue after a surge in demand for its on-line video games because the coronavirus pandemic compelled individuals to remain at dwelling.