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Why Baidu Music Merged With Taihe in 2015—and What Its 150 Million Users Meant

Baidu’s December 2015 merger plan joined its music platform with Taihe’s rights and A&R resources. The reported 150 million monthly active users were not a paid-subscriber count.
From TheFinanceBase Team3 min to read
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In December 2015, Baidu announced plans to merge its music-streaming service with Taihe Entertainment Group, combining Baidu’s digital platform and distribution capabilities with Taihe’s music rights and artist-and-repertoire resources. Baidu’s reported 150 million monthly active users were not 150 million paying subscribers: contemporary coverage said the number of paying users was unclear.

What the Baidu Music–Taihe deal was

On December 3, 2015, Baidu announced plans to combine Baidu Music with Taihe Entertainment Group. The strategic logic was to unite a large online distribution platform with a company that had music rights and artist-and-repertoire (A&R) resources. VentureBeat described Baidu’s strengths as downstream digital platform and distribution capabilities, while Taihe would contribute intellectual property and A&R assets. VentureBeat’s December 3, 2015 report and Music Ally’s contemporaneous coverage characterized it as a combination of an internet platform and a traditional music company.

What Taihe brought

Contemporary reports said Taihe held rights to more than 700,000 recordings and had long-term cooperation agreements with hundreds of international and domestic music institutions. Those figures describe assets reported in 2015, not a current inventory. Music Business Worldwide also reported the 700,000-plus rights figure.

What 150 million monthly active users meant

The 150 million figure was a Baidu-reported monthly active user count cited in December 2015 coverage. It indicated reported audience reach, not the number of subscribers paying for music. VentureBeat explicitly said the number of paying users was unclear. Monthly active users also do not, on their own, establish listening time, customer retention, or how many people converted to a paid tier. VentureBeat and Music Business Worldwide reported the audience claim in the context of the merger.

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How Apple Music fit into the competition

Apple Music had launched in China at the end of September 2015, shortly before the merger announcement, giving the deal an international competitive backdrop. But the business context was broader than Apple: contemporary coverage also pointed to Chinese rivals and competition for label relationships, exclusive content, and distribution. Music Ally discussed label exclusives involving CMC, Tencent, and Alibaba; RAIN News covered Alibaba and Tencent’s music-sector activity alongside the Baidu–Taihe combination. Music Ally and RAIN News provide that competitive context.

It is therefore too strong to say Apple alone caused the merger. VentureBeat framed the move as a possible defensive response to Apple’s arrival, while other contemporary accounts emphasized domestic streaming competition and the value of music-rights and distribution deals. Baidu’s own press-release statement, reproduced by VentureBeat, said: “As the intellectual property regime continues to improve in China and users are increasingly willing to pay for online content, prospects for the Chinese digital music industry look increasingly bright.” That was the company’s rationale, not an independent finding.

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What Baidu Music cost in 2015

RAIN News reported that Baidu Music offered a free tier and a paid tier priced at about $1–2 per month. VentureBeat gave a similar approximate range and noted that it depended on RMB exchange fluctuations. These are reported 2015 prices, not current pricing. The contemporary accounts do not provide comparable paid-subscriber conversion data for Baidu Music and Apple Music, so the reported user totals cannot establish which service had more paying customers. RAIN News and VentureBeat describe the historical tier and price.

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How to read the market forecasts from the time

VentureBeat relayed an Analysys International forecast that China’s digital music market would be worth about $2.15 billion in 2015, 30% more than in 2014, and reach about $2.8 billion by 2017. These were forecasts reported in 2015, not verified actual results. They help explain why companies were competing for users, rights, and distribution, but should not be mistaken for a current market-size estimate. VentureBeat’s report attributes the forecast to Analysys International.

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