Tencent said on Tuesday that it has exited all exclusive music copyright agreements it had been engaged in after Chinese regulators barred it from such deals last month, requiring the company to relinquish exclusive music licensing rights within 30 days.
Tencent said that, as of August 23rd, most exclusive agreements had been terminated according to regulations. The company also sent statements to the upstream copyright parties that failed to cancel the contract on schedule to express its intention of giving up theirexclusive authorization of music copyright.
Exceptional cases included cooperation periods with independent musicians that do not exceed three years or the exclusive launching period of new songs that do not exceed 30 days. Tencent will not investigate the responsibilities of the copyright parties arising from authorizing other parties music copyright.
On the basis of adhering to authorities requirements, Tencent said that it will continue to cooperate with upstream copyright parties in a non-exclusive way.
Tencent Music is the product of a digital music business merger between China Music Group (CMC) and QQ Music under Tencent in 2016. Although the anti-monopoly punishment has brought negative influence to Tencent Music, it has not affected the enthusiasm of investment institutions. According to financial analysis website Marketbeat.com, more than 40 international investment institutions have put more money into shares of Tencent Music since August.
On August 17, Tencent Music announced its financial report for the second quarter of 2021. Its total revenue was 8.01 billion yuan, a year-on-year increase of 15.5%. The net profit attributable to shareholders of the company was 827 million yuan, down 12% year-on-year. In the second quarter, the number of online music paying users reached 66.2 million, a year-on-year increase of 40.6%. However, the number of monthly active users was 623 million, down 4.3% year-on-year.
When the anti-monopoly regulation for Tencent Music was issued in July, many investors believed that it would help NetEase Cloud Music go public independently. However, earlier in August, NetEase Cloud Music announced that it would suspend its listing in Hong Kong.