Tencent and Sony have renewed their strategic cooperation arrangement for the online digital distribution of Sony Music’s audio music master recordings in China. The two companies first signed an agreement in 2014 that gave Tencent exclusive digital distribution rights for Sony’s catalogue in China.
China generated $169.7 million for recorded music rights-holders last year – up 63.8% from the previous year– making it the 14th biggest region for labels and artists. Yet its annual per capita (person) spend on recorded music last year was just $0.10, meaning the Chinese market still holds enormous potential for the music industry.
“We are excited to continue relationship and cooperation between Sony Music and one of our most valued business partners, Tencent Music,” said Dennis Handlin, Chairman & CEO of Sony Music Entertainment Australia & New Zealand and President, Asia, in a statement. “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.”
Dowson Tong, Chairman of Tencent Music, said in a statement: “Our partnership will continue to flourish as Tencent Music’s influence on the China market grows and as we bring even more great content from Sony Music’s global catalogue of heavyweight artists to China, enhancing Sony Music’s business and thrilling music lovers in the mainland.”