LOS ANGELES (CelebrityAccess) — Universal Music Group has signed a strategic licensing agreement with one of China's leading digital music distribution platforms, Tencent Music Entertainment Group.
Under the terms of the multi-year agreement, Tencent will distribute music from UMG’s roster of record labels and artists on its streaming platforms QQ Music, KuGou, and Kuwo. Tencent will also be UMG’s exclusive master distribution and licensing partner to sub-license UMG’s content to third-party music service providers in China.
As well, TME will cross-promote UMG's artists across its other online properties and media channels, as well as collaborate in the development of Abbey Road Studios China, a state-of-the-art recording and mastering facility.
TME is one of the largest music platforms in China, providing over 17 million songs to 600 million monthly actives, including 15 million paid subscribers, the companies said.
"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," said UMG Chairman/CEO Lucian Grainge.
The financial terms of the transaction were not disclosed. – Staff Writers