Ximalaya

If I had a chance to invest a company, I would like to invest Ximalaya (ximalaya.com), a start company in China. The company is hosting audio services over internet and mobile phones. These services include music, audio books, radio programs and user crafted audio contents. One of their products is a popular mobile app, Ximalaya, which allows users to listen to audio contents online or offline. The app also allows users to upload audio content to their own channels.
The market that Xiamalya is after is audio service and they already occupied a big portion of the market on mobile phones. People find their services are valuable especially when audio is the only form of entertainment available, like during driving, jogging, or just walking.
Still, I have a few concerns about the future of the company and the biggest one is intelligent property. The company has been servicing a huge volume of songs, music and audio books that uploaded by individual users without any checking on intelligent property violations. A class lawsuit can easily destroy the company on its way to IPO. The company must address intelligent property properly in order to attract more investments.
One thing that the company can do better is to increase revenue by adding advertisement to the content it services. Currently, there is no advertisement added to contents. It is not clear whether this is their strategy to mitigate legal risk, e.g. there is little or no “commercial usage” of contents.
Overall, I am interest on the audio service market over internet and mobile phones and would like to invest a leading company, Ximalaya, in this area.

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