Alibaba will shut down its music streaming application project next month, which means the end of the Chinese company’s great hopes for providing music services, and announced that Xiami Music will be closed on the 5th of next February due to what it described as “adjustments in the development of business“, where this news comes in conjunction with the company facing great pressure from the regulatory authorities in several cases.
Xiami was created in 2006, acquired by Alibaba in 2013 in an effort to support the company’s music services, and Alibaba had another app called Ali Planet (which closed in late 2016), all of which belonged to its Ali Music division.
But the company soon faced challenges from the regulatory authorities, as in July 2015 the Chinese government began to take strict measures regarding the infringement of music copyrights, and this campaign attacked the Ali Music services project and many other services, and Chinese music streaming services platforms removed more two million songs were violated from its websites and apps over a three-week period during the summer of that year.
The competition in music streaming was fierce, as in 2016 Chinese gaming and entertainment giant Tencent set up its own music entertainment venture, which dominated the market with popular streaming platforms including Kugou Music, QQ Music and Kuwo Music.
In total, these three platforms have around 430 million monthly active users, while Xiami has just under 7 million active monthly users.
In 2019, Alibaba bought a minority stake in NetEase Cloud Music for $700 million, and although this platform has 99 million users, it is still far from being similar to Tencent’s services, and Alibaba is now facing antitrust investigations by the Chinese government.