Tencent expands music streaming business with Universal Music Group pact
Tencent Holdings has forged a landmark licensing agreement with Universal Music Group (UMG) that is expected to significantly expand the internet giant’s digital music distribution business in China.
The multi-year deal will enable Tencent Music Entertainment Group, a unit of the Shenzhen-based company, to distribute UMG’s roster of record labels and global recording stars on its streaming platforms QQ Music, KuGou and Kuwo, according to their joint statement on Tuesday.
In addition, UMG and Tencent Music said they will work together to design, build and develop Abbey Road Studios China, a state-of-the-art recording and mastering facility inspired by the French-American firm’s iconic studio in London.
Financial terms of the joint initiative were not disclosed.
On the mainland, Tencent Music is one of the largest music platforms, providing more than 17 million songs to 600 million monthly active users. A strong advocate of authorised music distribution, the company has more than 15 million paying subscribers.