UMG EXTENDS TWO DEALS IN CHINA

Universal Music Group has extended licensing agreements with two companies in China, NetEase Cloud Music and Tencent Music Entertainment Group. In addition, UMG and Tencent have formed a joint venture label to focus on Chinese artists.

TME will continue to distribute music UMG’s music on QQ Music, Kugou Music and Kuwo Music. UMG’s content will also be licensed for use on TME’s online karaoke platform, WeSing, along with other live streaming and expanded digital services. NetEase Cloud Music will directly distribute UMG’s music, including domestic and international recording artists, on its streaming NetEase Cloud Music platform and associated digital services in China.

“The extension of this agreement provides our roster of artists access to significant further opportunities in China, building on new momentum in the Chinese music market,” Sunny Chang, Universal Music Greater China’s Chairman and CEO, said of the TME deal. “China has grown to become one of the world’s leading music markets, driven by the adoption of streaming by more and more Chinese music fans. UMG is excited to continue working together with TME to continue to deliver UMG artists and their music to this rapidly growing population of passionate music consumers. Furthermore, we look forward to working with TME together on our new music label in China to develop talented artists and bring their original music to a global audience.”

The companies did not announce a name for the label, a time frame for releases or any artists that have been signed. Under their previous agreement, the two companies collaborated on music product innovations such as online music shows and videos.

The NetEase agreement is also expected to increase the scope of premium offerings and experiences available to music fans in China.

“As leaders in music-based entertainment, UMG and NetEase Cloud Music share a commitment to encouraging creativity and innovation, respecting the power of artistry and exploring wider opportunities for the appreciation and enjoyment of the world’s most iconic, edgy and influential music. We are confident that the partnership will bring wider choice not only for music lovers and artists, but also for the industry," said NetEase CEO William Ding.