On Monday (Aug. 10), The music companies, Universal Music Group(UMG) & Tencent Music Entertainment Group (TME) has launched a new venture music label in China, that will develop, produce and showcase Chinese artists.
UMG shared the news with the announcement that, it had reached a multi-year licensing extension with Tencent, as well as a brand new multi-year licensing deal with Chinese streaming platform NetEase Cloud Music.
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Accordance with the agreement between UMG and Tencent, the first signed in May 2017, then Tencent will proceed to distribute UMG content material on its related streaming platforms QQ Music, Kogou Music and Kuwo Music, in addition to the karaoke platform WeSing.
Tencent CEO Cussion Pang said in a statement, “Supported by our hundreds of millions of music lovers, powerful promotional channels, extensive user insights, as well as well-rounded digital music services, we have been a valuable partner for the industry to engage with music lovers.
“We look forward to cultivating the growth of the dynamic and expanding music entertainment industry in China, taking our shared love and pursuit of new music, to new levels that will benefit all,” he added.
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Speaking for NetEase was CEO William Ding, who said of the deal, “We are confident that the partnership will bring wider choice not only for music lovers and artists but also for the industry.”
back in March, Tencent and a consortium accomplished the acquisition of a 10% stake in UMG from its parent firm Vivendi for an estimated $3.3 billion. The arrangements are the most recent collaboration between UMG and Tencent, which operates the largest streaming companies in mainland China.
In its second quarter earnings release Monday, Tencent reported total revenues of RMB6.93 billion ($981 million), representing an increase of 17.5% year-over-year.