Alibaba Group will shut its audio streaming platform Xiami Music following 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 closing will occur on Feb. 5.
“It’s hard to say goodbye after being with you for 12 years.”
Alibaba obtained the music support in 2013, also invested millions of yuan to compete in China’s internet music marketplace, which can be dominated by Tencent Holdings. Its efforts nevertheless haven’t paid off along with the app currently only has 2 percent of China’s music streaming marketplace, behind KuGou Music, QQ Music, KuWo, and NetEase Cloud Music, based on Beijing-headquartered data intelligence company TalkingData.
Xiami’s closure also comes following Chinese authorities announced that they had launched an antitrust investigation into Alibaba, which beyond its heart e-commerce business also functions in sectors such as financial services, cloud computing and artificial intelligence.
However, it doesn’t indicate the limit to Alibaba’s participation in the internet streaming marketplace. In September 2019, Alibaba invested $700 million in one of Xiami’s opponents, NetEase Cloud Music.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Sophie Yu in Beijing and Brenda Goh in Shanghai. Editing by Michael Perry.
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