Under the deal Tencent will distribute Warner Music’s repertoire and new releases to all legitimate online platforms. Mobile platforms are excluded from the agreement and Warner Music China may strike its own mobile deals.
Tencent will promote Warner Music’s artists through video, online, social media and via games. Warner acts include the Red Hot Chilli Peppers, Linkin Park and Jason Mraz.
Providing easily available streamed music in China may help keep unlicensed pirate activities at bay.
In addition to the streaming business, the Chinese giant could see side benefits from the deal, through its concert ticketing business, as well as the sale of merchandise through JD.com, the e-commerce site in which it has a 15% stake.