Tencent’s Grip on Music Weakens After NetEase-Universal Deal
- NetEase inks a deal with world’s largest music publisher
- The deal marks first step in dismantling Tencent’s China hold
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NetEase Inc. struck a deal to license songs from Universal Music Group for the first time, a move that will further Beijing’s effort to dismantle Tencent Holdings Ltd.’s commanding lead in Chinese music streaming.
The world’s biggest music company said it’s agreed to license tunes to both Tencent Music Entertainment Group and closest rival NetEase, ending an exclusive arrangement with China’s dominant music-streaming platform. Tencent Music’s shares dropped 2% in New York, but its parent gained 3.5% in Hong Kong after falling two straight days.