Chinese mobile device maker Xiaomi looks to be eyeing the living room.
Xiaomi plans to invest $1 billion in Internet TV content, the company said Tuesday in a blog post on Chinese social media site Weibo. Reuters earlier reported on Xiaomi's plans. Chen Tong, a former executive at China-based Internet company Sina, and Chuan Wang, Xiaomi's director for Internet TV related products, will lead the content push, according to the blog post.
As with previous announcements, Xiaomi is keeping its plans close to the vest. The company said only that it wants "to repeat the success of Xiaomi's hardware integration model in the television industry," according to Reuters.
Xiaomi has been able to rapidly gain ground in the mobile market. In the recently ended third quarter, the Chinese vendor became the world's third largest smartphone maker after Samsung and Apple, according to IDC. Although it's best known for building budget-friendly smartphone and tablets, Xiaomi has also tiptoed its way into the entertainment business.
Xiaomi already sells some smart TV products, including the Mi TV and Mi Box set-top box. Xiaomi's business model revolves around selling products at or near cost , meaning its important for the company to build out a platform that can deliver exclusive content and eventually generate revenue. It appears that this move is a step in that direction.
Xiaomi did not immediately respond to a request for comment.