Alibaba Group Holding Limited BABA is reportedly seeking to plunge into music streaming once again after announcing its decision to close down its Xiami Music streaming platform earlier this year.
What Happened: After Chinese regulators forced Chinese technology conglomerate Tencent Holdings Limited TCEHY to give up exclusive music licensing deals, Alibaba has sprung into action, the South China Morning Post reported.
A subsidiary of Alibaba has applied for a number of trademarks, beginning in June, for Xiami music streaming service, the report said. The categories under which the company has made the filings include concert production, ticketing and music publishing, the report added.
Over the weekend, Tencent was slapped with a 500,000-yuan ($76,865) fine and was also asked to end its exclusive music licensing deals with global record labels within 30 days.
Related Link: Alibaba Analyst Says Regulatory Environment 'Challenging,' But Worst Is Over
Why It's Important: Xiami, which was operational for about 12 years, was shuttered in February due to the emergence of Tencent as a Goliath in the industry. Tencent's dominance was helped by its 2016 acquisition of a majority stake in China Music Group, which had a plethora of exclusive music deals.
Tencent, with the aid of China Music Group, reportedly controlled about 75% of China's music streaming market in 2017.
With regulators circling around Alibaba's financial side of business, the company could operate with some freedom in the music streaming industry.
At last check, Alibaba shares were down 5.55% at $181.11.
Related Link: HOW TO BUY TENCENT
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
