TENCENT HOLDINGS ADR (OTCMKTS:TCEHY) stayed almost in the same range as of in the previous day and finally closed at the end of the last trading session with a minor gain of 0.16%. The volume of the day at 802,000 was almost identical with the daily average of 863,000. The lack of any serious surge in the volume so far and very narrow intraday ranges of the price keep the bulls in the game but the dangerous signal produced by the false breakout can’t be ignored. The general implication of a false breakout comes in the form of a retest of the other boundary of the channel.
TENCENT HOLDINGS ADR (OTCMKTS:TCEHY) reported that its digital music platform known as QQ music has finalized a deal with streaming service firm NetEase to sublicense around 1.5 million songs. This move is expected to result in improved availability of authorized and legal online music in China.
The alliance between NetEase and peer music streaming sites QQ is expected to result in additional revenue and extended business for both firms. In addition, a collaboration deal on the digital music albums sales marks an avenue for future exploration. The reported deal is projected to boost TENCENT QQ’s online music library to more than fifteen million licensed songs. In fact, it will feature songs from Sony Music, Korea’s YG group and Warner Music group.
This deal is also the first collaboration between two streaming sites after China’s National Copyright Administration ordered to remove unlicensed music and songs from digital platforms in July 2015. Stricter anti-piracy guidelines are effective in China in an attempt to support legalized music on digital platforms.
Tencent’s management recognized the shift of licensing songs from a peer platform as a continuation of company’s vision to boost growth of legal music. This measure would support the legitimization of digital music industry, and the development of respect for the intellectual property of the artists.
It is expected that Tencent’s extended foray in to the Chinese digital music industry will be beneficial for Chinese music customers. All major companies in the Chinese e-commerce firm are planning to diversify their portfolios so as to hedge their risks. This latest trend is giving rise to a win-win situation for other markets like music industry in China.
At the same time, Tencent has partnered with JD.Com Inc (ADR)(NASDAQ:JD) to boost its sales on forthcoming November 11 Singles Day.