Alibaba Group will close its music streaming platform Xiam Music next month, a move that marks its ambition to enter the Chinese entertainment industry.
The online music department of the Chinese e-commerce giant stated on its Weibo account on Tuesday: “Due to operational adjustments, we will stop serving Xia Mi Music.” He added that the shutdown will begin on February 5.
“It’s hard to see you again after 12 years with you.”
Alibaba acquired music services in 2013 and invested millions of RMB to compete in China’s online music market dominated by Tencent. But TalkingData, a data intelligence company based in Beijing, said that the application’s efforts have not been successful. The application currently only accounts for 2% of the Chinese music streaming market, second only to KuGou Music, QQ Music, KuWo and NetEase Cloud. Music.
After the Chinese regulator announced that it had initiated an antitrust investigation against Alibaba, Xia Mi closed the company. Alibaba not only operates financial services, cloud computing and artificial intelligence in addition to its core e-commerce business.
However, this does not mean the end of Alibaba’s participation in the online streaming media market. In September 2019, Alibaba invested US$700 million (approximately Rs 51 billion) in NetEase Cloud Music, one of Xiami’s competitors.
© Thomson Reuters 2020
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