Alibaba Signs Deal With BMG
Germany's BMG music rights company said on Monday it had signed a music digital distribution deal with China's Alibaba Group Holding Ltd. The deal will bring more than 2.5 million copyrights to Alibaba.
"The agreement will not only significantly boost earnings by BMG artists and writers from the worlds most populous nation, but also give them a powerful ally in helping grow the legitimate music market in China," BMG said.
Alibabas Digital Entertainment business unit will promote BMG writers and artists through channels such as its streaming apps Xiami and TTPod. It will also monitor and take action against digital and mobile services who may infringe the rights of BMG clients.
The agreement includes digital rights to over 2.5m copyrights, including recordings from such artists as Scorpions, Jean-Michel Jarre, Black Sabbath, Kylie Minogue, Boyz II Men, Smashing Pumpkins and Bryan Ferry, as well as rights in songs from the likes of Bruno Mars, John Legend, Robbie Williams, the Rolling Stones, Aerosmith and will.i.am.
Patrick Liu, President of Alibabas Digital Entertainment business unit, said, "We are delighted to join hands with BMG to develop a new business model that combines music with e-commerce in Chinas entertainment sector. Our rich experience in big data analysis will help us lead innovation in the music industry that ultimately enhances customer experience."
The alliance with Alibaba follows the announcement in November 2014 that BMG had struck a worldwide deal with leading Chinese independent Giant Jump to manage its music publishing and recording rights both domestically and internationally.
Alibaba has touted the potential for selling digital products as well as physical products in China, despite the country's track record of users not paying for media content.
The company is competing with Tencent Holdings Ltd, China's biggest social networking and online entertainment firm, and search leader Baidu and its online video unit, iQiyi.