Tencent Music is currently under a joint label with all of the 'big three' labels

   Tencent's music streaming company is further tightening its ties with the "three major record companies," its main licensing partners. Tencent Music Entertainment announced on Tuesday that it had established a new joint label with Warner Music Group, following similar agreements with Universal Music Group in August 2020 and Sony Music Entertainment in early 2018.

   This partnership will utilize "Warner Music's global resources and experience in supporting the artists' careers, as well as TME's immense influence in the Chinese music and entertainment market." contents, ”TME said in a statement.
   Similarly, the joint label was formed with UMG with the aim of bringing international artists to China, one of the fastest growing music markets in the world, and to overseas Chinese musicians.Along with the labeling agreement, TME and WMG signed a multi-year licensing agreement, an extension to their decades-long partnership.
   TME has ongoing licensing relationships with all three major record labels and a number of labels have shown up in fair relationships. In January, a conglomerate led by Tencent increased its total stake in UMG by 20%.
   TME also operates some of China's most popular music streaming services. Through a stream of music streaming applications including QQ Music, Kugou Music and Kuwo Music, TME jointly commanded 622 monthly active users on mobile devices as of the fourth quarter.
   However, the payout ratio is still relatively low, with 9% of users paying in the quarter, up from 6.2% in the previous year.
   But TME has another big revenue stream that distinguishes it from Western streaming services like Spotify: social entertainment. This category includes karaoke app WeSing that makes money selling virtual gifts, which users buy and send to performers they appreciate. It reflects the interactions between fans and idols in real life.
   The segment contributed $ 854 million in fourth-quarter revenue, compared with $ 423 million generated from user registrations and digital music sales.