NetEase-Sony Deal Is Newest Blow to Tencent’s Grip on Music
- NetEase inks a deal with one of the Big Three label companies
- The pact comes as Beijing cracks down on tech monopolies
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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.