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Why did Ali shut down Xiami Music instead of selling shrimp?

As an old user of dried shrimps, it's really a pity to see dried shrimps closed. Many netizens asked why there are so many users of shrimp, so why would they rather turn it off than sell it? In fact, the answer is cruel: because no one wants to buy it!

Music software is actually a very expensive industry, which is mainly reflected in the copyright of music. We know that most songs and music works are copyrighted, either by the author or by the record company. There are not many songs and music that are good to listen to. Once a popular track appears, its copyright will attract the competition of mainstream platforms such as QQ Music, Xiami Music and Netease Music, and finally the highest price will be won. Therefore, the copyright fees of some popular stars are very high, and small music platforms simply can't afford it.

among these mainstream music platforms, QQ Music has a large number of users on QQ and WeChat platforms, so it has the largest "power" and the largest number of paid members, so it burns money. Some popular music is hard to escape Tencent's "palm". This makes it more and more expensive for shrimp to get music songs. Even if Ali is behind shrimp, it is hard to bear the higher cost of music library in the competition with Tencent.

In the last two years, users in Xiami Music have also found that there are fewer and fewer popular songs in the music library, and their favorite songs turn gray one by one, which will obviously lead to the continuous loss of users. However, the decrease of paying users has made it impossible for shrimp to get more funds to buy music copyright, which has become a vicious circle.

At present, besides QQ music and shrimp, the mainstream music software platforms only include Netease music, Mi Gu and Cool Dog music. Among them, only Netease Cloud Music has the ability to buy shrimp. But in 219, Ali invested 2 billion yuan in Netease Music. Therefore, Xiami Music and Netease Music are actually "a family". For Ali, it is meaningless to sell shrimp to Netease Music. Other music platforms can't afford shrimp, so it is better to shut it down completely.

As for the users of shrimp, it is not particularly important to Ali, so many of the first members of Xiami Music were imported from Taobao and Alipay. For example, I usually use Taobao account to log in to shrimp. Therefore, these users themselves are members of Ali, and because of the fierce competition for music copyright in the past two years, most netizens who often listen to music have accounts on multiple platforms such as QQ, Netease and Shrimp. Therefore, even if the shrimp is closed, it will not cause a large loss of users.

Although the copyright of Netease Cloud Music's music library is not as good as that of QQ Music, the users of Netease Cloud Music are relatively fixed, and the features of the platform are mainly recommendation algorithms and various music reviews, so its development prospect is better than that of Xiami Music.

Therefore, in the future, Ali will focus on Netease Cloud Music, which has invested heavily in the music platform, and Xiami Music will become dispensable. If it continues, it will not only burn money, but also compete with Netease Cloud Music for users, so it is better to close the matter and save costs.