Tencent signs US$280 million deal for streaming rights to 6,000 films and shows amid rivalry with short video apps
- A deal with China’s largest film copyright holder gives Tencent streaming rights to thousands of films and television shows
- The Shenzhen Stock Exchange says it is seeking clarification from Beijing Jetsen Technology on whether the deal is exclusive
Tencent Holdings has agreed to pay 1.8 billion yuan (US$284 million) to secure streaming rights for over 6,000 films and television series, as the Chinese social media and video gaming giant escalates efforts to retain the attention of online audiences, who are increasingly drawn to short video apps.
Among the 6,332 films and TV shows that will become available on Tencent’s platforms in the next six years are Hong Kong director Ann Hui’s biopic The Golden Era, according to a filing by Beijing Jetsen Technology to the Shenzhen Stock Exchange on Monday.
Jetsen, which is the exclusive distributor of the American sitcom Friends in China, and a co-producer of patriotic action blockbuster Wolf Warrior 2, holds the largest share of copyright licences for films and TV shows in the country, according to the company.
The deal will give Tencent exclusive rights to broadcast the content involved, according to a report by Chinese media outlet Thepaper.cn on Tuesday, allowing the Shenzhen-based giant to entice viewers with unique content, or sub-license to rivals, such as Bilibili or ByteDance, operator of popular short video-sharing apps TikTok and Douyin.
The Shenzhen bourse said on Tuesday it had sent an inquiry letter to Jetsen seeking details on whether the company gave exclusive streaming rights to Tencent. Jetsen previously said it is a major provider to video sites including ByteDance and Bilibili, which are both stepping up their spending to buy streaming rights.
Tencent declined to comment on the report on Wednesday, while Jetsen did not respond to a request for comment.
While exclusive licensing is a common global practice in the video streaming industry, China’s antitrust watchdog last year slapped a 500,000 yuan fine on Tencent’s music arm and ordered it to end exclusive music licensing deals with international record labels.
