The Chinese Tencent Music and the American entertainment behemoth Warner Music signed a multiyear agreement. The two companies are no stranger to each other, as they have been working together for the past decade.
The latter looks to push further into the ever-growing music market. Simon Robson, Warner Music’s president of international, stated that this opportunity is making “our artist impossible to ignore.”
Warner is not the first group that made efforts to crack the Asian market. Last month, Universal closed a deal with K-pop record labels to break into South Korea. At the same time, it is working with Big Hit Entertainment to create a new label to scout and launch a new K-pop boyband.
While the American record labels are trying to gain recognition in Asia, Tencent invests in the US music market. The company bought a 2% stake in Warner Music, a 9% stake in Spotify, and a 20% stake in Universal Music.
Following the news, Tencent Music stock price gained 0.10%, while Warner went up 0.52%.
Sources: ft.com, bbc.com, finance.yahoo.com
