As reported by Tech Crunch,
Using Xiami was once synonymous with having good music taste in China. The music app, which debuted around 2008 and was acquired by Alibaba in 2013, is discontinuing its streaming service today, Xiami said in a notice to users.
Xiami, which means “smalll shrimp” in Chinese, was once known for its smart discovery, elegant design, social features and support for indie musicians which helped attract a loyal following among China’s artsy, hipster types. The beginning of its decline coincided with the battle for music rights in China. A digital music behemoth was formed in 2016 when Tencent bought a majority stake in China Music Group, which brought to Tencent a reservoir of exclusive music deals. By 2017, Tencent’s music apps controlled as much as 75% of China’s music streaming market.
Xiami, on the other hand, lost large quantities of music rights and consequently users who converted to more resource-rich platforms, albeit grudgingly.
Alibaba did have a shot at online music. In 2015, the e-commerce giant appointed two renowned industry veterans — a songwriter and a music company executive — to steer its newly minted music group. Neither was necessarily seen as having the experience for running an internet music business. Instead of growing Xiami, they poured resources into a platform called Alibaba Planet to build artist-fan relationships. The idea didn’t take off.
In the meantime, newcomers like NetEase Music are holding out in their battle against Tencent’s music empire, of which dominance has endured to this day.
While users will lose access to the app and all their data, Xiami is not totally dead. Its copyrights-focused segment Yin Luo (音螺 or Conch Music) will continue to operate, according to the notice. But the dream of Xiami’s utopian founders, “earn music & money” (hence the app’s original name “EMUMO”), a vision they laid out inside a cafe on a snowy day in Hangzhou, is surely gone.