Chinese media conglomerate Tencent is reportedly acquiring 10% of major label Universal Music Group (UMG). The deal includes an option to own an additional ten percent within a year.
UMG is part of French-based holding company Vivendi.
The two companies have mutually benefited in the past: Tencent forged a music licensing deal with UMG that gave the Chinese firm’s social apps access to music. UMG, and other major labels, have themselves bought into Spotify and other music streamers. the developing ecosystem includes components which are seeking to continue the recorded music industry’s revival in the post-CD era.
Tencent has about 35-million paying subscribers to its music service, as of Q3 2019, according to CNBC.