HONG KONG-- Time Warner Inc.'s HBO has signed a deal with
Tencent Holdings Ltd. to distribute its TV dramas and movies
through the Chinese Internet giant's online video site as the U.S.
cable network tries to expand its audience in the world's most
populous country.
For the network behind popular series such as "Game of Thrones"
and "True Detective," the partnership could allow it to take
advantage of Tencent's massive online user base and create an
official distribution channel in a market where pirated videos are
rampant.
For Tencent, whose online games and social networks have
hundreds of millions of users in China, the deal with HBO is part
of its attempt to move ahead of rivals in online entertainment, a
major battlefield for China's technology firms. In July, e-commerce
giant Alibaba Group Holding Ltd. announced an alliance with Lions
Gate Entertainment Corp. to offer the U.S. firm's programs on the
Chinese firm's set-top boxes. Xiaomi Inc., China's largest
smartphone maker by shipments, said earlier this month that it will
invest $1 billion to acquire TV programs.
Under the deal, Tencent Video, the Chinese company's video site,
becomes the exclusive online platform for HBO shows in China, the
companies said in a statement Tuesday. Tencent Video, a major video
site available on PCs, tablets and smartphones, competes against
Youku Tudou Inc., in which Alibaba holds a 16.5% stake.
Financial terms of the deal weren't disclosed.
Appetite for HBO programs, especially "Game of Thrones," is
already big in China. Even though there are currently no authorized
online distribution channels for HBO in China, many shows are
available on multiple piracy video sites. Even on some major online
video sites, users have posted unauthorized clips of some HBO shows
with Chinese subtitles.
On Douban.com., a popular Chinese film review site, the first
season of "Game of Thrones" has been reviewed by over 100,000
people, while Season 4, the current season, has accumulated 40,000
reviews. The current season has received one of the highest scores
on Douban.com among U.S. TV dramas--higher than other shows that
have been available through authorized online channels, such as
"The Big Bang Theory."
"This partnership with Tencent Video ensures that Chinese fans
will now be able to enjoy our dramas at the high level of quality
they were meant to be experienced," said Charles Schreger, HBO's
president of programming sales, in a statement.
Online distribution through Tencent Video will start "in the
very near future," the companies said in a statement. The companies
also said that "Game of Thrones" is "set to hit China audiences."
Still, under Chinese rules, the programs need to be approved by the
government before Tencent Video can offer them.
In September, China's top broadcasting regulator said in a
statement that it must approve all foreign TV shows before they can
be posted on video sites and that sites must pull unapproved shows
by early next year. According to a draft of the government rules
posted by local Chinese media, censors are likely to review the
whole season of a foreign TV show before any episodes can air,
possibly causing a delay in online distribution.
A Tencent spokeswoman declined to comment.
Tencent's partnership with HBO follows the Chinese company's
another alliance with Warner Music Group. Under a deal signed
earlier this month, Tencent would play a middleman role to expand
Warner Music's online music distribution channels in China,
including platforms that aren't run by Tencent.
Lilian Lin in Beijing contributed to this article.
Write to Juro Osawa at juro.osawa@wsj.com
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