In business as in life, imitation is the sincerest form of flattery.
Alibaba, Amazon’s China-based ecommerce rival, is planning to spend more than $7 billion on its entertainment division over the next three years, according to a memo obtained by Reuters.
The move would add yet another player to what has become a crowded and pricey entertainment industry that includes traditional movie studios and TV networks as well as newer entrants like Netflix, Amazon, Hulu, with major players like Facebook, Google and Apple also waiting in the wings.
Amazon has already spent billions of dollars on music and TV content despite the company’s core businesses revolving around ecommerce and cloud computing. Still, Amazon has built up a considerable video operation that is included with its Prime membership — one that is growing as fast or faster than any other video service. Read more…