Universal Music Renews Licensing Deal with Tencent Music in China

Universal Music has extended its licensing agreement with Tencent Music Entertainment, the operator of three streaming services and an online karaoke platform in the Chinese market. Described as a multi-year deal, the renewed agreement emphasizes the shared commitment of both companies to create value for artists and provide exceptional experiences for music lovers.

The statement outlines that Tencent Music Entertainment will continue to have access to Universal Music Group’s (UMG) catalog for QQ Music, Kugou Music, Kuwo Music, and WeSing under the new agreement. The comprehensive partnership also includes music streaming in advanced audio formats such as Dolby Atmos and high-definition.

This renewal comes as a continuation of Universal's longstanding partnership with Tencent, a major player in the Chinese streaming market. Initially, Universal, like other major labels, entered into an exclusivity deal with Tencent in China, giving Tencent the exclusive rights to distribute Universal's catalog within the country. However, due to regulatory pressure, exclusivity arrangements were discontinued, and Universal announced its first direct licensing agreement with Tencent's competitor, NetEase Cloud Music, in 2020.

Beyond licensing, Tencent's broader commercial relationship with Universal includes a significant shareholding in the major label. Before Universal Music listed on the Dutch stock exchange in September 2021, a Tencent-led consortium acquired a 20 percent stake in the company, maintaining its position as a notable shareholder in the publicly listed UMG.

Cussion Pang, Executive Chairman of TME said, “UMG has been an invaluable ecosystem partner to TME with deep mutual trust. Our diverse user demographics, large subscriber base, extensive industry insights and advanced technologies have positioned us as a standout partner of choice. With a shared passion for music, we look forward to enriching our cooperation and strengthening our vibrant ecosystem to promote growth and prosperity."

Adam Granite, Universal's EVP Of Market Development added, “We are pleased to extend our licensing agreement with TME for the Chinese market. With our renewed focus on signing and supporting the best talent from across Greater China, we look forward to working together with TME to help create compelling new experiences for fans across all TME platforms, and to expand on the opportunities available to UMG’s family of artists in China."