Personal Finance

What Is LeEco?


LeEco is focused on getting content into users' hands. Image source: LeEco.

LeEco will use its video-subscription service and film production company to help with that, along with its library of 5,000 movies and 100,000 TV shows. The company doesn't own all of that content, but rather licenses it, just like Netflix (NASDAQ: NFLX) and Amazon do for much of their video content. And the company is making more deals all the time, with Lionsgate, MGM, Showtime and others topping its most recent content-partnership list.

"By integrating the best content with the best hardware through our EUI -- ecosystem user interface -- we are creating an 'Eco Lifestyle,' a truly connected experience and life," said Jia.

It's still unclear whether or not that will model work in the U.S. or not. As research firm TrendForce wrote a few months ago:

As most of its revenue comes from streaming video subscribers, LeEco intends to use the VIZIO brand to enter the North American market and replicate its business model there. However, LeEco will have more difficulty in getting subscribers in North America than in China due to competition from the region's major video streaming platforms such as Netflix.

LeEco is small by many tech conglomerate standards. It brought in just $15 million in profit in the first quarter of this year. But with the company already expanding into Hong Kong, India and Russia, it's clear LeEco is bent on expanding its hardware and content synergies on a worldwide scale -- and now those synergies will be put to the ultimate test as the company tries to take on America's biggest tech giants.

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Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Apple, Netflix, and Tesla Motors. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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