China's Alibaba to shut down Xiami music app next month

Alibaba Group moves marks a step back from its ambitions to push into China’s entertainment industry


Reuters January 05, 2021
VR Pay is part of Alibaba's efforts to capitalize on the latest technology in online shopping. PHOTO: REUTERS

SHANGHAI/ BEIJING:

Alibaba Group will close its music streaming platform Xiami Music next month, in a move that marks a step back from its ambitions to push into China’s entertainment industry.

“Due to operational adjustments, we will stop the service of Xiami Music,” the online music arm of the Chinese e-commerce giant said on Tuesday on its Weibo account, adding that the closure will occur on February 5.

Adobe's chief product officer predicts 8 tech trends of 2021

“It’s hard to say goodbye after being with you for 12 years.”

Alibaba acquired the music service in 2013 and invested millions of yuan to compete in China’s online music market, which is dominated by Tencent Holdings. Its efforts however have not paid off and the app currently only has 2% of China’s music streaming market, behind KuGou Music, QQ Music, KuWo, and NetEase Cloud Music, according to Beijing-headquartered data intelligence company TalkingData.

The biggest technology failures of 2020

Xiami’s closure also comes after Chinese regulators announced that they had launched an antitrust investigation into Alibaba, which beyond its core e-commerce business also operates in sectors such as financial services, cloud computing, and artificial intelligence.

However, it does not mark the end of Alibaba’s participation in the online streaming market. In September 2019, Alibaba invested $700 million in one of Xiami’s competitors, NetEase Cloud Music.

 

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

E-Publications

Most Read