Alibaba Will Soon Give Competition To Tencent For Music Streaming In China – ZMR Blog
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Alibaba Will Soon Give Competition To Tencent For Music Streaming In China

The music streaming industry of China is dominated by Tencent and it has been reported that the rival tech Alibaba is making plans to challenge Tencent. Alibaba has taken up a minor stake of $700 million in Net Ease Cloud Music. Xiami is an app which is already owned by Alibaba and they had partnered with Net Ease in the past for sharing of music libraries. According to analysts at Citi Research it is expected that this latest deal that was announced on Thursday would make the relation between the two of them stronger and this will not be good news for Tencent Music. There are nearly 652 million active monthly users for Tencent. Major streaming platforms like QQMusic, Kuwo and KuGou has helped them establish a strong hold in the market.

The latest earnings report of Net Ease said that their platform of cloud music has got about 800 million users. However the Citi analysts have reported the count of active monthly users to be 139 million as in the month of July. The analysts said that the three services of Tencent hold the first, second and third positions followed by Net Ease in the number of active users. Latest statistics for the monthly active users of Xiami was not available. However according to Quest Mobile, a market research company, by the end of the year 2017 the service had active users of nearly 18.4 million.

Research analyst of IDC China, Yu Xue said that Alibaba would be able to help in the growth of Net Ease by the sharing of content and by promoting their services through their other apps. He also said that Alibaba required an alliance to give a competition to Tencent in the market of streaming music. Along with the disclosing of this investment, another deal between Alibaba and Net Ease was also disclosed. The e-commerce platform of Net Ease, Kaola was bought by Alibaba for $2 billion for boosting their business in online business.

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