Alibaba Music Group is set to take the mobile music world by storm, as China’s Z Generation tunes into their favourite internet service provider. Alibaba already has its own streaming app Xiami. Now it has set itself the goal of merging this with Tiantian via Alibaba Music Group.
Alibaba Music Group Chasing 450 Million Customers
South China Morning Post reports 750 million unique mobile subscribers in China, of which 60% are using smartphones. These devices are mini-auditoriums allowing consumers to enjoy videos and soundtracks anywhere they go. To create an impression of the commercial implications of this for Alibaba Music Group, the U.S. population is only 321 million according to an estimate released by the U.S. Census Bureau on July 15, 2015.
Real Opportunity for Alibaba Music Group to Perform
Following a successful deal with Unilever, Alibaba signed with BMG.Com recently in order to secure access to 2.5 million song copyrights. Its popular artists include many already on the nation’s lips. There are signs of Alibaba Music Group already looking further afield to the West. The company’s CEO, Song Ke and Chairman Gao Xiaosong have decided to be hands-on at the launch. This one is clearly too big to risk failure. With Jack Ma watching from the sidelines, they will know that failure is not an option.
Ambitious Plans Ahead for Alibaba’s Music Brand
Song Ke and Gao Xiaosong have indicated they plan to merge Alibaba’s Xiami with Tiantian. They have previous experience, with Ke having founded Taihe Rye Music under Warner Music, and Gao Xiaosong being a singer-songwriter in his own right.
However Alibaba Music Group still has to come up directly against Tencent that has distribution deals with Sony, Warner, and YG Entertainment. It also has established links through to Apple Music, Beatport, Spotify, and SounCloud. In the end, Chinese consumers will have the first and final call on the brand that comes out on top.