Sony Music has become the first foreign record company to forge a joint venture in China, defying rampant piracy in the country.
The world's second-largest record label would spend US$30 million to establish the venture and continue to invest to build a nationwide distribution network, said Richard Denekamp, Asia president of Sony Music.
Under the joint venture, Sony Music will take a 49 per cent stake in Shanghai Epic Music Entertainment, which includes mainland partners Shanghai Synergy Multi-Media Group and Shanghai Jingwen Investment.
Under its World Trade Organisation commitments, China has agreed to open up the country's distribution network for audio and video products.
Mr Denekamp said: 'We have obtained a licence to distribute our works throughout the country. We will create branches over all the other provinces and market our products to consumers.'
The joint venture had been set up at the end of February, he said.
At present, Sony Music has a CD plant and a distribution centre in the mainland.
