China’s Copyright Regulator Calls on Music Streaming Firms to Avoid Unhealthy Competition

China’s Copyright Regulator Calls on Music Streaming Firms to Avoid Unhealthy Competition

Dou Shicong

Date: Wed, 09/13/2017 - 15:21 / Keywords: Alibaba Music, QQ Music, Netease Cloud Music, Copyright, Streaming
China’s Copyright Regulator Calls on Music Streaming Firms to Avoid Unhealthy Competition
China’s Copyright Regulator Calls on Music Streaming Firms to Avoid Unhealthy Competition

(Yicai Global) Sept. 13 -- China’s National Copyright Administration, an office of its media regulator, the State Administration of Press, Publication, Radio, Film and Television, recently held a meeting with major online music streaming platforms to discuss copyright-related matters and called on the firms to avoid unhealthy competition for exclusive licenses and make music accessible to more internet users.

The copyright administrator began a crackdown on copyright violations in the music industry in 2015. All online providers have cooperated and removed some 2.2 million unauthorized records, the regulator said on Sept. 12. They have also signed a joint declaration on copyright protection.

However, music streamers have been bidding up exclusive rights licenses in recent months, leading to unhealthy competition that limits the audience for certain songs or artists and affecting the development of the music market.

The NCA required the firms to refrain from competing for exclusive licenses, to sublicense copyrights to each other and to continue operating under the declaration they signed. The aim is to get rid of illegal or irrational practices that hinder the distribution of music.

Companies involved in the discussions were Alibaba Group Holding Ltd.’s [NYSE:BABA] Alibaba Music, Tencent Holding Ltd.’s [HKG:0700] QQ Music and NetEase Inc.’s [NASDAQ:NTES] NetEase Cloud Music.

Alibaba Music Group and Tencent Music Entertainment Group have already reached an agreement on copyright licenses, the pair said on Sept. 11. They will share their exclusive resources through sublicensing deals.

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Keywords: Alibaba Music, QQ Music, Netease Cloud Music, Copyright, Streaming