Universal Music Group (UMG), the world’s largest music company has entered into a huge licensing agreement that will see its music distributed in China by Tencent Music Entertainment Group on the streaming platforms viz QQ Music, KuGou and Kuwo.
Making the announcement, UMG chairman/CEO Lucian Grainge said, “We’re looking forward to working with Tencent as we develop local Chinese artists and repertoire, as well as global stars,Select Files 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.”
On its part, Tencent will sub-license UMG’s content to third-party music service providers in the country and promote its music on Tencent online properties and other media channels.
The companies will also work together to build Abbey Road Studios China, a recording and mastering facility inspired by the recording studio in London made world-famous by The Beatles and owned by UMG.
Tencent, which claims 15 million paying subscribers, is one of the largest music platforms in the region and represents a stabilizing force in the Chinese music market.
The company, which struck a licensing deal with Warner Music Group in 2014 and Sony Music two years later, now handles the music from all three major labels in China.
