Victor Koo.

Alibaba’s newly formed media company, Alibaba Digital Media and Entertainment Group, has unveiled its long-held secret investment strategy. The group will invest its fund of $1.5 billion in three main directions: Intellectual Property (IP), internationalization and innovation, according to Victor Koo, the head of Alibaba Digital Media and Entertainment Strategy and Investment Committee.

Koo explained the plan on Dec. 8 in a speech he gave at the 4th China Internet Audio-visual Conference. He said that innovation front will focus on watching, searching, playing and shooting because there are many literary and artistic creations in these two aspects. With regards to internationalization, the group believes many opportunities await them for international cooperation over the next decade.

The Chinese e-commerce giant formed a venture with Youku Tudou, web browser UCWeb, Alibaba Pictures Group Ltd. and the company's gaming, literature, music and digital units to form Alibaba Digital Media and Entertainment Group in late October. Victor Koo stepped down as chairman and CEO of Youku Tudou to lead the new fund, which has raised over 10 billion RMB.