Tencent is the leading social network and online games firm in China. (Photo : Imaginechina)
Chinese Internet giant Tencent Holdings has unveiled on Tuesday a licensing deal with rival streaming service NetEase through its music platform, QQ Music. The agreement is expected to enhance the availability of songs to netizens across the country.
Tencent was able to sublicense around 1.5 million digital songs to NetEase under the deal. Apart from this, the two also committed to explore more opportunities to work hand in hand in other ventures on digital album sales.
Currently, the licensed library of QQ Music tallies up to over 15 million authorized digital songs, which came from various firms such as Warner Music Group, Sony Music, and Korea's YG Entertainment.
The deal between the two giant streaming platforms serves as the first alliance since the National Copyright Administration of China has strictly regulated the sector in July. For over a quarter now, the watchdog has ordered the removal of unlicensed music from the country's online streaming sites.
The move comes as the Chinese government beefs up its efforts to introduce tighter anti-piracy regulations and impose legalized music on Web-based platforms.
For the management of Tencent, the deal involving the rival firm highlights the company's commitment to help the development of legal world-class music. As per its officials, the strategic venture will be significant in the legitimization of the online music industry, and in the boosting of respect for the IP of the artists.
Meanwhile, the China Business News has commented in a report that "Tencent's enhanced foray into the Chinese music industry is likely to benefit Chinese music customers."
The news publication opined that there is a resulting win-win situation in the Chinese music market as major e-commerce players are eyeing to diversify their portfolios, foraying into the online music streaming sector.
