Universal Music Group (UMG) Tencent Music Entertainment Group (TME), a digital music distribution platform in China, have signed licensing agreement that will significantly expand the Chinese music market.
Under the terms of the multi-year agreement, TME will distribute music from UMG’s roster of record labels and global recording stars on its streaming platforms QQ Music, KuGou and Kuwo. TME will also be UMG’s master distribution and licensing partner to exclusively sub-license UMG’s content to third-party music service providers in China. Both parties will work together to find new ways to develop artists, to innovate business models and to reinforce a robust copyright protection environment. In addition, TME will support UMG artists to promote their music, leveraging Tencent online properties and other media channels.
Lucian Grainge, Chairman and CEO of Universal Music Group, said, “We’re looking forward to working with Tencent as we develop local Chinese artists and repertoire, as well as global stars, in this dynamic and expanding music market. With more than 80 years of history in China, UMG has been engaged in the unique evolution of the country’s music business and I’m looking forward to working with Tencent to bring exciting new artists and services to music fans across China. Given recent developments in technology and the commercial environment there, now is the right time for an innovative strategic partnership with a leading Chinese company like Tencent that can meaningfully accelerate the development of the country’s entire music ecosystem and, in turn, inspire growth in creative and commercial opportunities for all artists.”