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alibaba shuts down 12-year-old music streaming app xiami

AVATAR Rita Liao
Rita Liao
Reporter, China, TechCrunch
January 5, 2021
alibaba shuts down 12-year-old music streaming app xiami

For a period, utilizing Xiami was widely associated with refined musical preferences within China. The music application, initially launched approximately in 2008 and later acquired by Alibaba in 2013, is ceasing its streaming operations today, as communicated in a notification to its user base.

Xiami, translating to “small shrimp” in Chinese, previously distinguished itself through intelligent music recommendations, a sophisticated user interface, integrated social functionalities, and its dedication to independent artists. These qualities cultivated a dedicated audience among China’s creative and trendsetting individuals. The onset of its downturn aligned with increasing competition for music licensing rights in China. A major player in digital music emerged in 2016 when Tencent secured a controlling interest in China Music Group, granting Tencent access to a substantial portfolio of exclusive music agreements. By 2017, Tencent’s music applications held up to 75% of the Chinese music streaming market share.

Conversely, Xiami experienced significant losses in music rights and, as a result, a decline in its user base, with many transitioning to platforms offering a more extensive music library, often reluctantly.

Alibaba did attempt to establish a presence in the online music sector. In 2015, the e-commerce leader recruited two well-known figures from the music industry – a composer and a music industry executive – to lead its newly formed music division. However, their experience was not universally considered suitable for managing an internet-based music service. Rather than expanding Xiami, they concentrated efforts on a platform named Alibaba Planet, aiming to foster connections between artists and their fans. This initiative did not achieve widespread success.

Currently, emerging competitors such as NetEase Music continue to challenge Tencent’s dominant position in the music market, a position it has maintained consistently.

Users will no longer have access to the application and their associated data; however, Xiami is not entirely ceasing operations. Its copyright management division, Yin Luo (音螺 or Conch Music), will remain active, according to the announcement. Nevertheless, the original vision of Xiami’s founders – “earn music & money” (the basis for the app’s initial name “EMUMO”) – a concept conceived during a discussion in a Hangzhou café on a snowy day, has effectively ended.

#alibaba#xiami#music streaming#china#shutdown#digital music

Rita Liao

Rita previously reported on the Asian technology landscape for TechCrunch, focusing particularly on Chinese businesses expanding internationally and web3 initiatives demonstrating practical use cases. Prior to her roles at Tech in Asia and TechNode, Rita oversaw communications efforts for SOSV’s accelerator programs throughout Asia. Her professional background also includes experience with a documentary film production firm and a wellness retreat facility located in New England. She received her education at Bowdoin College, where she pursued studies in both political science and visual arts. Contact: ritaliao@pm.me
Rita Liao