Xiaomi ready to invest $1 billion to expand its Internet TV service

Rising electronics powerhouse Xiaomi plans to invest $1 billion in providing more online TV content to subscribers, which will complement Xiaomi TV and the company's set-top box.

China has more than 600 million Internet users, with a growing number watching online video via smartphones - and Xiaomi wants to compete against Alibaba, Tencent, and others in the growing market. The country was the second largest movie market in 2012, trailing the United States, with continued growth expected over the next several years, analysts predict.

Here is what Chen Tong, a recent Xiaomi hire and former Chinese Sina Internet company executive said: "We want to repeat the success of Xiaomi's hardware integration model in the television industry."

Xiaomi is currently the No. 3 largest smartphone manufacturer in the world, trailing only Apple and Samsung, and looks to diversify its product offerings to consumers.