Wen | Li Tong Gu Lexiao
Editor | Chen Chen
Recently, the rumor that Xiami Music will be shut down in January next year has attracted attention from the whole network. In response, Alibaba and Xiami Music both responded with "no comment." In 2019, Alibaba, as the lead investor, participated in NetEase Cloud Music's US$700 million B2 round of financing, which was once regarded as a signal to "give up Xiami Music". Xiami Music, which was born 14 years ago and has a market share of less than 2%, really want to say goodbye?
Alibaba Entertainment, which has been losing money year after year,
In 2013, Ali wholly acquired Xiami Music. In 2015, Alibaba Music Group was established, and related music businesses under Alibaba, such as Xiami and Tiantiandongting, were fully integrated. Subsequently, Ali Music was included in the Ali Entertainment section established in 2016. In June 2019, Ali Music was merged into the innovative business group. According to data from Alibaba's financial report, from 2017 to 2020 fiscal year, the growth rate of the group's digital media and entertainment business operating income has gradually slowed down. The adjusted EBITA profit rate averages about -60%, and the loss has gradually narrowed, but it has not yet achieved profitability.
Xiami Music's market share is less than 2%.
In the past three years of online music platform monthly activity rate, Xiami Music has a significant gap with other platforms, with an average monthly activity rate of only 1.39%. The number one Kugou Music has an average monthly activity rate of 24.96%, which is 18 times that of Xiami Music.
According to interface statistics, from May 2019 to April 2020, the average monthly active number of Xiami Music was 11.9 million, and the average market share was about 1.8%.
Xiami music copyright accounts for less than 20%
In July 2015, the state issued the "Strictest Copyright Order". As of July 31 of that year, the entire network had taken the initiative to remove more than 2.2 million unauthorized music works. Among them, 23,700 were offline by Tencent, 26,000 by Ali Music, and 642,000 by Baidu Music.
In the context of copyright standardization, copyright wars among several major music platforms have intensified. Compared with Tencent's massive "enclosure", Ali's lack of copyright awareness directly led to the lack of stamina for the development of Xiami Music. Xiami Music, which was born in a "small and beautiful" style, has gradually declined due to its niche characteristics and lack of copyright support. The "2016 China Online Music Industry Research Report" released by
iResearch shows that the copyrighted music of Tencent music platforms (Kugou Music, Kuwo Music, QQ Music) accounted for more than 90% of the total. NetEase Cloud Music Copyright Musical songs account for about 70% of the overall copyrighted music, while Ali Music’s copyrighted music accounts for less than 20% of the overall copyrighted music.
mobile music TOP4 dominates the market, Xiami Music has a significant gap. After participating in NetEase Cloud Music financing, in August 2020, Ali included NetEase Cloud Music into 88VIP membership rights. In terms of music rights, users can choose Xiami Music or NetEase Cloud Music. This move put Xiami Music in a more difficult situation.
According to the "2020 China Mobile Music Industry Report", Tencent Music Group and NetEase Cloud Music occupy more than 90% of the market. In September 2020, among the Top 10 companies of China Mobile Music by active users, 5 companies are Tencent. NetEase Cloud Music ranks fourth by virtue of its social attributes, and its user stickiness is high. In the past year, NetEase Cloud Music has an average monthly usage time of 16 hours, which is close to twice the industry average. In contrast, Xiami Music ranks seventh, with a huge gap with the head music platform and obvious faults.
Although many users have expressed their regrets for Xiami Music, their feelings may not be able to save the lonely Xiami Music. Is Xiami Music in your listening platform?
