The Fall of Xiami: Alibaba Discontinues Its Pioneering Music Streaming Service
For over a decade, Xiami Music stood as a cultural icon among China’s music enthusiasts. Known for its indie-friendly platform and sophisticated music discovery features, the app—whose name translates to “small shrimp” in Chinese—was acquired by Alibaba in 2013 but will officially cease operations as of January 2021.
Why Xiami Mattered
Launched in 2008, Xiami carved out a niche by:
- Offering smart music recommendations
- Featuring a minimalist, user-friendly design
- Supporting independent artists
- Building social features for music discovery
Its loyal user base consisted largely of China’s creative class—those who valued curation over mainstream hits.
The Turning Point: Music Rights Wars
Xiami’s decline began in 2016 when Tencent acquired a majority stake in China Music Group, consolidating exclusive licensing deals. By 2017, Tencent’s platforms (QQ Music, KuGou, Kuwo) dominated 75% of China’s streaming market, leaving compe*****s like Xiami struggling to retain users as they lost access to key catalogs.
Alibaba’s Missed Opportunity
In 2015, Alibaba appointed music industry veterans to lead its digital music strategy. However, instead of strengthening Xiami, they pivoted to Alibaba Planet, a platform focused on artist-fan engagement that failed to gain traction. Meanwhile, rivals like NetEase Cloud Music continued challenging Tencent’s dominance.
What Happens Next?
While the Xiami app will shut down, its copyright-focused subsidiary, Yin Luo (Conch Music), will remain operational. However, the original vision of Xiami’s founders—to create a fair ecosystem where artists could “earn music & money” (EMUMO)—has officially come to an end.
The Bigger Picture
Xiami’s closure highlights the brutal competition in China’s music streaming industry, where licensing wars and platform consolidation have reshaped the market. As Tencent strengthens its grip—even expanding its stake in Universal Music—smaller players face an uphill battle to survive.
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