In a bid to increase its online entertainment offerings, Alibaba has struck an agreement with music publisher BMG, which gives it access to over 2.5 million tracks. The partnership is notable because it represents the first time Alibaba’s digital entertainment unit has signed with a music partner outside of Asia.
The business already has agreements with Taiwanese music companies Rock Records and HIM International Music.
The deal gives Alibaba access to BMG’s catalog, which includes tracks from Bruno Mars, the Rolling Stones, Aerosmith, and Kylie Minogue. Music will be made available to consumers through streaming apps Xiami and TTPod, both of which are operated by Alibaba’s digital entertainment business.
It’s important to remember that Alibaba is more than just an e-commerce company. It is also one of China’s biggest mobile Internet players, competing head-to-head with Tencent, which has already struck similar arrangements with Warner Music Group and Sony Music Entertainment.
Alibaba’s growth plans include selling other online services to the huge user base it has grown by operating China’s top e-commerce platforms and online payment service Alipay.
In addition to online entertainment, the company and its subsidiaries also has aspirations in healthcare management, cloud computing, and financial services like a credit scoring system that uses data from Alibaba’s family of e-commerce platforms.
Source: TC by Catherine Shu 30 March 2015