Alibaba Group will shut its music streaming platform Xiami Music subsequent month, in a transfer that marks a step again from its ambitions to push into China’s leisure trade.
“Due to operational adjustments, we will stop the service of Xiami Music,” the web music arm of the Chinese language e-commerce big mentioned on Tuesday on its Weibo account, including that the closure will happen on February 5.
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“It’s hard to say goodbye after being with you for 12 years.”
Alibaba acquired the music service in 2013 and invested tens of millions of yuan to compete in China’s on-line music market, which is dominated by Tencent Holdings. Its efforts nonetheless haven’t paid off and the app presently solely has 2% of China’s music streaming market, behind KuGou Music, QQ Music, KuWo, and NetEase Cloud Music, based on Beijing-headquartered information intelligence firm TalkingData.
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Xiami’s closure additionally comes after Chinese language regulators introduced that they’d launched an antitrust investigation into Alibaba, which past its core e-commerce enterprise additionally operates in sectors resembling monetary companies, cloud computing, and synthetic intelligence.
Nonetheless, it doesn’t mark the tip of Alibaba’s participation within the on-line streaming market. In September 2019, Alibaba invested $700 million in certainly one of Xiami’s rivals, NetEase Cloud Music.