Tencent Music reaches pact with TikTokBusiness | Reuters and Tereza Cai 14 Jan 2020
Tencent's (0700) Tencent Music reached an agreement with mainland blockbuster short-video app TikTok, owned by ByteDance on music copyrights sublicensing at the end of last year, mainland media reported.
Three major music platforms owned by Tencent Music, including KuGou, Kuwo and QQ Music, have created official accounts on Tiktok.
Mainland media said the cooperation will focus on providing high-quality music and support musicians, while the two sides could share content and online traffic resources.
As a relative newcomer to the social media landscape, TikTok has yet to wrestle publicly with the persistent content moderation scandals that have dogged larger and more entrenched competitors.
At the end of last year, a Tencent-led consortium is taking a 10 percent stake in Vivendi's Universal Music Group, valuing the music label that houses Lady Gaga and The Beatles at 30 billion euros (HK$259.38 billion) and giving the Chinese firm a global backstage pass.
The deal allows both companies to expand in a recovering global music market, giving Tencent more access to US artists while UMG can tap into the Asian market, including big-selling "K-pop" Korean pop stars.