Universal Music and NetEase Strike Major China Streaming Deal

Universal Music Group and NetEase Cloud Music have announced a multi-year licensing agreement that will bring UMG's entire global music catalog to the Chinese streaming platform. The deal marks a significant expansion of the two companies' existing partnership and reflects growing interest from major music labels in capturing a larger share of China's digital music market.

NetEase Cloud Music will now distribute millions of recordings across its streaming services and digital products in China. The catalog includes both Chinese and international artists released through UMG's historic record labels, spanning every musical genre and era.

Background

Universal Music Group and NetEase Cloud Music first partnered in August 2020, establishing an initial licensing agreement for the Chinese market. That relationship has now been renewed and expanded, as both companies look to capitalize on China's position as the world's largest music streaming market by user base.

China's music streaming industry has experienced rapid growth in recent years. According to industry data, China's annual streaming subscription revenues surpassed $1 billion in 2024, representing an 18.9 percent increase compared to the previous year. This expansion has made the country increasingly attractive to global music companies seeking new revenue streams.

"With the largest user base globally, China stands as the world's biggest music streaming market. Moving forward, we will continue to work hand in hand with UMG to deliver premium music experiences to our users in China." – William Ding, CEO of NetEase Cloud Music

Key Details

The agreement goes beyond simple catalog distribution. NetEase Cloud Music and UMG plan to collaborate on joint marketing campaigns and develop new product features designed to enhance the user experience. A particular focus will be expanding the platform's premium subscription tiers, including its Super VIP offering.

Both companies have also committed to what they describe as artist-centric principles. The deal includes specific provisions governing artificial intelligence, reflecting what executives called a "shared commitment to responsible AI practices that support and protect the music and artists that UMG represents."

Expanding Premium Services

The companies plan to work together to strengthen what UMG describes as an "artist-first streaming environment." This includes efforts to support creators while engaging fans and connecting China's music market more closely with the global industry.

Artist Development and Promotion

The partnership will also focus on promoting both international artists from UMG's roster and Chinese artists to broader audiences. UMG has indicated that introducing domestic Chinese artists to global markets remains a priority as the company expands its presence in the country.

What This Means

The deal signals UMG's continued commitment to establishing itself as a major player in China's music industry. Over the past year, Universal Music Greater China has signed multiple agreements with prominent artists and platforms, steadily building its footprint in one of the world's most important music markets.

For NetEase Cloud Music, the expanded partnership provides access to a vastly larger catalog of international music, which could help the platform attract and retain subscribers in an increasingly competitive market. The focus on premium subscription tiers suggests both companies believe there is significant room for growth in higher-priced service offerings.

The specific inclusion of AI-related provisions in the deal reflects broader industry concerns about how streaming platforms and record labels should approach artificial intelligence. As AI technology becomes more prevalent in music production and distribution, major players are establishing frameworks for how these tools should be used in ways that protect artists and their work.

UMG executives emphasized that the agreement represents more than a simple licensing transaction. They described it as a strategic alignment between two companies committed to developing China's music market while maintaining standards they believe protect artists and support the creative industry.

"This new agreement deepens our strategic alignment through mutual commitment to artist-centric principles, including unwavering support for human artistry, bringing fans and artists closer together." – Jonathan Dworkin, Executive Vice President of Digital Business Development & Strategy at Universal Music Group

The timing of the announcement comes as competition intensifies among global music companies for access to China's massive audience. With hundreds of millions of music streaming users in the country, securing strong partnerships with major local platforms has become essential for international record labels seeking to maximize their reach and revenue in Asia.