Yahoo China Announces Closure of Music Platform
Yahoo China has confirmed the discontinuation of its music streaming service, set to go offline on January 20, 2013. The company cited a “product strategy adjustment” as the reason for the shutdown in an official statement posted on its Chinese-language website.
“Thank you for your continued support of Yahoo services. Due to an adjustment in our product strategy, we have decided to take Yahoo Music offline on January 20, 2013, when the service will no longer be available,” the announcement read.
A Trend of Foreign Tech Exits from China
This move follows a broader pattern of foreign internet companies scaling back operations in China:
- Google recently closed its shopping service in December 2012, just two months after shuttering Music Search China.
- The tech giant struggled to compete with Baidu, which secured licensing deals with major labels like Universal, Warner, and Sony BMG.
Despite Yahoo’s partnership with Alibaba—which operates Yahoo China—the music service couldn’t sustain its foothold. Yahoo holds a 23% stake in Alibaba and recently appointed Jacqueline Reses (Yahoo’s EVP of People and Development) to Alibaba’s board. However, the collaboration has faced turbulence, with Reses being the third appointee to the role within a year.
Yahoo’s Global Restructuring Continues
The shutdown aligns with Yahoo’s broader reorganization strategy:
- In April 2012, the company announced a major restructuring into consumer, regional, and technology divisions.
- By October 2012, Yahoo closed its South Korea office, cutting approximately 200 jobs.
TechCrunch has reached out to Yahoo for further clarification on the music service’s closure and will update this story if a response is received.
This development highlights the challenges foreign tech firms face in China’s competitive digital landscape, where local players like Baidu dominate key sectors.
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