Chinese companies are investing big money in acquiring live broadcasting rights of major sports events.
Although they are putting lot of capital to bag these rights, the companies are banking on earnings from online video advertising to turn in the profits.
According to iResearch Consulting Group, the market of online video advertising is expected to more than double in the next three years to $8.5 billion.
Here are five companies that have recently won exclusive broadcasting rights of global sports events.
1. Alibaba
Alibaba's sports arm Alisports has secured exclusive live streaming rights to rugby matches after signing an agreement with World Rugby, the global governing body of the sport, this month.
According to the deal, Alisports will develop a million rugby players in China in the next 10 years and raise the profile of the sport in the country.
2. Tencent
Last year, Tencent's online video platform signed a $500 million agreement for a five-year extension to its existing deal with the National Basketball Association of the United States, giving the company exclusive rights to stream games in China.
3. LeEco
LeSports,the sports arm of Beijing-based LeEco (formerly known as LeTV), has spent tens of millions on digital rights to 120 sports properties, including English Premier League soccer games and Wimbledon tennis.
4. Suning
PPTV, backed by retailer Suning, will pay $75 million every year through 2020 for Spanish Liga soccer matches.
5. Wanda
In February 2015, Wanda Group paid 1.05 billion euros to acquire 100 percent stake of Infront Sports and Media.
Infront, a world leading sports marketing group, owns many sports events broadcasting rights, including FIFA World Cup.
