Why Alibaba Lost China's Streaming Music Market to Tencent Music
Eight years ago, Alibaba (NYSE: BABA) bought the streaming music platform Xiami to expand its digital media business. But Xiami never gained much momentum against its larger rivals, and Alibaba quietly killed off the app earlier this month. It replaced it with a smaller platform called Conch Music, which will mainly serve as a copyright administration and distribution service for musicians.
Xiami's demise might seem like a minor setback compared to Alibaba's looming antitrust issues, but it marks the loss of a major growth market to Tencent Music (NYSE: TME), China's top streaming music company. Let's see why Xiami flopped, and what its failure means for Alibaba.
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Source Fool.com
