Chinese web large Tencent stated Thursday it had purchased some belongings of struggling Asian streaming service Iflix, in a serious enlargement of its on-line video presence within 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 house market not too long ago.
Tencent stated 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 stated in an announcement.
The firm didn’t reveal the worth of the deal however leisure outlet Variety stated it was value “several tens of millions of dollars”, citing sources aware of the settlement.
The vary of content material on Iflix contains many authentic exhibits catered for native audiences. It offers away some content material without cost whereas getting cash 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 the world over.
It was then compelled to hunt bids from different corporations, Variety reported.
Tencent is among 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 larger transfer.
A serious competitor at house, Baidu-controlled iQiyi, has additionally began increasing in Asia however has solely taken small steps to date.
Tencent reported in May a pointy rise in first-quarter web revenue after a surge in demand for its on-line video games because the coronavirus pandemic compelled folks to remain at house.