Letv defends spending spree, as first player from mainland China to ‘crack’ Hong Kong speculates to accumulate subscribers
As it splashes out on content, company claims to be on verge of announcing more deals with big Hollywood studios
Chinese online video-streaming giant Letv has been investing aggressively in its operations in China and Hong Kong, but it defended its spending spree this week by saying that internet companies often need to make such moves at an early stage before seeing large profits.
“The key is to accumulate a pool of users,” said Mok Chui-tin, the company’s chief executive for Asia Pacific.
Since it established an international office in Hong Kong in August last year, Letv has become the first major Chinese player in this industry to stake a claim in the city with a series of bold moves.
Chinese rival iQiyi targeted Hong Kong in April, but has yet to start streaming video to internet users in the city.