NetEase Inc. now licenses music directly from Sony Music Entertainment, in a blow to its rival Tencent Music Entertainment Group, ending the latter's exclusive arrangement with Sony. — REUTERS
NetEase Inc. struck a deal to license music directly from Sony Music Entertainment for the first time, a move that will further Beijing’s efforts to upend Tencent Holdings Ltd.’s supremacy in Chinese music streaming.
The music powerhouse has agreed to license tunes to both Tencent Music Entertainment Group and closest rival NetEase, ending an exclusive arrangement with China’s dominant music-streaming service, according to statements by Tencent Music and NetEase. The parallel deals follow similar arrangements between Universal Music Group and the two Chinese platforms unveiled in August last year.
China is preparing to slap a fine on Tencent as part of its antitrust crackdown on the country’s internet giants, Reuters reported in April, citing unnamed sources. Part of the investigation focuses on its music spinoff, the report said, and regulators have informed Tencent that it should give up exclusive music rights.
China’s antitrust watchdog had investigated Tencent’s dealings with the world’s three biggest record labels but the probe was suspended, people familiar with the matter told Bloomberg News last February.
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