(Yicai Global) Jan. 9 -- Yulebao, a film and entertainment investment platform under Alibaba Pictures Group, will invest CNY3 billion (USD437.8 million) in 100 Chinese movie and TV projects to enhance filmmakers' access to funding. The platform expects to double its return of investment.
Yulebao targets the sector that is beset with a long payment cycle, where it takes as much as six steps and as long as six months for the money to flow from cinemas to producers and distributors, China Securities Journal reported.
The platform under the Hong Kong-based film company anticipates to gross CNY10 billion in the booming mainland movie market that has expanded for almost a decade. Revenues from Chinese films reached an annual growth rate of over 24 percent to CNY60.9 billion last year. However, success at the box office often requires complex partnerships involving multiple investors, studios, promoters and distributors.
The service aims to enhance the efficiency of small and mid-sized movie and TV firms which may shift their focus on projects instead of worrying about the money, said Xie Ying, the head of the Yulebao. The platform has already helped 10 companies to raise nearly CNY200 million (USD29.2 million) over the past months.
"Yulebao brings an advanced internet-based model to the film and TV sector and connects supply and demand," said Xia Xi, the vice president of producer Huace Film & TV's Beijing office.
Editor: Emmi Laine