Xiami Music, controlled by Alibaba Group (NYSE: BABA; HKEX: 9988), announced today that due to business adjustments, it is discontinuing its streaming service.
Xiami was founded by a former Alibaba employee in 2006 and acquired by the e-commerce giant in 2013. Many users have expressed their regret by saying "the end of another era", "Farewell, Xiami", and "I am sad today, as Xiami was my last getaway."
According to the announcement, the service will be shut down on March 5, upon which users will not be able to log in.
The beginning of Xiami’s decline occurs amid the battle for music rights in China. Tencent Holdings (HKEX: 0700) acquired a majority stake in China Music Group in 2016 and since it has grown to become a giant in the industry. By 2017, Tencent’s music apps controlled a cumulative 75% of China’s music streaming market.
In 2019, Alibaba invested in NetEase Cloud Music, owned by tech titan NetEase (Nasdaq: NTES; HKEX: 9999). Some analysts regarded the move as a sign Alibaba has given up on developing its own music service.