Sony inks exclusive deal with Asia’s most valuable company, Tencent
The 2014-inked partnership between Asia’s most valuable company Tencent Holdings and Sony Music Entertainment has been renewed, giving the Chinese internet firm exclusive digital distribution rights to Sony’s master recordings in mainland China.
Denis Handlin AM, Chairman & CEO of Sony Music Entertainment Australia & New Zealand and President, Asia, was integral in inking the initial partnership and its renewal. Handlin was also behind Sony Music’s partnership with South Korean label Chrome Entertainment, which was signed in 2013.
“We are excited to continue [the] relationship and cooperation between Sony Music and one of our most valued business partners, Tencent Music,” Handlin said in a statement.
Tencent’s partnership with Sony has seen bothplay apart in tackling China’s music piracy issues. While mainland China is the 14th biggest recorded music market for labels and artists with 1.35bn people (IFPI data), as pointed out by MBW, its annual per capita (person) spend on recorded music last year was just $0.10.
“Tencent Music’s promotion of the legal use of digital music has made a very positive and lasting change to the market for music labels and music fans,” said Handlin. “The difference we have made together in the development of artists and in fan engagement through our strategic partnership is most significant. We look forward to taking the Chinese music market to the next level, becoming one of the top markets in the world.”
In making the announcement, Sony said it will help promote, distribute online and manage Tencent Music’s repertoire in the region – essentially continuing on with the original partnership’s terms.
Tencent will continue to promote Sony acts like Beyonce, Michael Jackson, Daft Punk, David Bowie and Sia in China via itsQQ Music social network service –which covers online distribution and has more than 400 million monthly active users –as well as through projects like university campus tours, awards shows and online concerts.
In July, Tencent, which holds similar deals with Warner Music and Believe Digital, acquired a majority stake in China Music Corporation. As the parent company of Chinese music-streaming services Kugou and Kuwo, China Music Corp. has been in the race to build a market for paid streaming subscriptions for some time. According to MBW, Tencent and China Music Corp. have since formed a new company in a deal worth $2.7bn; Tencent has the controlling stake.
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