NetEase Becomes a Distributor for Universal Music Group in China, Set to Support Local Talent

NetEase, Inc. (NASDAQ:NTES) is one of the Top 15 Chinese Companies on US Exchanges.

On January 20, NetEase, Inc.’s (NASDAQ:NTES) music arm, NetEase Cloud Music, and Universal Music Group (UMG) announced a strategic partnership for UMG’s world-leading music catalog of recordings and artists.

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The partnership is a multi-year licensing agreement under which UMG’s music will be available across NetEase Cloud Music’s streaming platform and affiliated digital services in China. NetEase will also be a distributor of UMG’s global recording catalogs across its partner platforms. Vivian Wei, Vice President of Copyrights at NetEase Cloud Music, said:

We are delighted to elevate our partnership to a new level, engaging in deeper and closer collaboration across licensing, artist promotion, AI exploration, and cultural exchange. Looking ahead, we remain committed to strengthening our partnership with UMG, fostering greater connections between international artists and Chinese audiences, while further accelerating the global expansion and influence of Chinese artists.

UMG will offer both local and international artists and music recordings to Chinese listeners, comprising millions of tracks across every genre and era. Under the agreement, companies will also collaborate on feature marketing campaigns and production innovation to improve fan experience and promote domestic artists on the global stage.

As of January 28, NTES shares have surged by more than 31% over the past year. Of the 40 analysts covering NetEase, 88% rate the stock a Buy, with a median price target of $164.74. This indicates an upside potential of more than 22.50%.

NetEase, Inc. (NASDAQ:NTES) is a Chinese electronic media and multimedia company. NetEase engages in online games, music streaming, online intelligent learning services, and internet content services.

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Disclosure: None. This article is originally published at Insider Monkey.