Alibaba and BMG Sign a Distribution Deal- Alibaba’s First Partnership Outside Asia

31 Mar

Ali baba


Alibaba has been on the ambition of entering the entertainment industry and has signed another deal to conquer it all.

Latest Alibaba news is about striking a deal with BMG, a music publishing company. The ecommerce giant has decided to make its presence felt in the entertainment industry. After being associated with SIFF recently, the company has struck a collaboration with BMG who is said to give access to more than 2.5 million music tracks. This deal promises to increase the offering of online entertainment for the company. The notable aspect regarding this partnership is that it’s the first time that Alibaba has signed a deal with any music partner outside Asia as far as the entertainment unit is concerned.

According to the Alibaba news, the company has further collaborations with Taiwanese companies namely Rock Records and HIM (International Music).

The deal with BMG has provided a gateway for the e-commerce giant to enter into the catalogue of the music company. The catalogue has many tracks from various artists, also including Kylie Minogue, Rolling Stones, Bruno Mars and Aerosmith. The tracks can be accessed by users via Xiami and TTPod which are streaming apps. Digital entertainment sector belonging to Alibaba operates these apps.

Another noticeable fact about Alibaba is that, not only it has been an e-commerce giant but is also known as biggest mobile Internet gamer in China. It has head-to-head competition with Tencent which is already renowned and is not only in agreement with Warner Music Group but also Sony Music Entertainment.

The further monetization that Alibaba plans to work on is growing business. It plans to sell other products and services to its vast circle of users that it has built via competing e-commerce platform that it operates and Alipay which is provides the users with online paying facility.

The streaming music market has potential growth for the International companies based in China only if the piracy issue can be resolved by them. Since pirated music is easy to access and buy, Chinese share had been less than 1 percent out of $15 billion revenue which was made globally by the record companies in 2013.

The government has begun taking strict action against this and deals like the ones mentioned above will give more power to the music publishers.

Alibaba personnel said that the collaborations will not only give rise to the earnings of the artists and BMG associates by the largest nation in the world bull will also provide them a powerful ally when it comes to China.

Alibaba will aim to help BMG to look for pirated music and take instant action on all the gestures that go against BMG’s copyright.

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Posted by on March 31, 2015 in Ali Baba, Technology


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