Spotify Rival Tencent Music Strikes Chord With Universal Music In Renewed Pact

Tencent Music Entertainment Group TME, an online music and audio entertainment platform in China, renewed a multi-year strategic licensing deal with Universal Music Group UMGNF. 

As per the terms, TME will continue to have access to UMG's music catalogue for QQ Music, Kugou Music, Kuwo Music, and WeSing. 

The expansive partnership also comprises music streaming in Dolby Atmos and high-definition (HD) formats.

"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," stated Cussion Pang, TME's Executive Chairman.

"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," said Adam Granite, UMG's EVP of Market Development.

In November, TME reported a third-quarter revenue decline of 10.8% year-over-year to $900 million, beating the consensus of $875.6 million and adjusted EPADS of $0.12 was in line with the consensus. 

Price Action: TME shares are trading higher by 0.11% at $8.74 premarket on the last check Wednesday.