UMG Makes Deeper Move Into China With Two New Major Deals

Universal Music Group made a pair of announcements on Wednesday that signal the global leader in music is getting more and more serious about China.

Universal Music Greater China and Modern Sky, a leading independent music label in the country, pressed send on a strategic distribution agreement giving the domestic label’s catalog and artists access to UMG’s global distribution network, fostering collaboration and promoting Chinese music and youth culture internationally.

Additionally, UMGC announced a pact with iQIYI, China’s leading online entertainment platform, to distribute new releases from contestants of reality show The Rap of China 2024 worldwide. This agreement includes support for the rap artists and opportunities for the top three finalists of the iQIYI-produced show to visit UMG’s global music labels and studios, with a goal to foster international collaborations with other artists and producers.

Modern Sky, founded in 1997 by Shen Lihui, has been a key player in China’s indie music scene, producing over 500 albums and working with influential bands and artists. The label’s roster includes over 150 acts, featuring Matt Lv, Aflou, DOUDOU and other established and emerging talents across diverse genres. Modern Sky is also known for organizing the Strawberry Music Festival, China’s first large-scale outdoor music festival, and hosting over 30 festivals and 1,000 performances annually. The label has expanded internationally with divisions in New York, Liverpool and Tokyo, with plans to debut the Strawberry Music Festival in Tokyo in 2025.

As for The Rap of China, a hit since its debut in 2018, UMGC will dedicate a team to support the narrative-driven show’s artists in A&R, management, marketing and merchandise development.

Timothy Xu, chairman and CEO of UMGC, expressed excitement about both collaborations, highlighting their potential to amplify Chinese music on the global stage. He said the Modern Sky agreement “not only broadens the global reach of Chinese music but also highlights the distinct energy and creativity that define China’s young generation today,” and noted the alliance with iQIYI’s The Rap of China 2024 “reaffirms our commitment to nurturing Chinese rap talent but also extends their global reach, bridging cultural gaps and enriching the international music landscape with the dynamic culture of Chinese rap.”

Modern Sky founder Shen Lihui said his label has “always embraced an independent spirit and a forward-looking vision,” adding they hope to “bring a fresh side of Chinese originality to the world, inviting audiences everywhere to experience the unique energy and cultural depth of China’s youth.”

Earlier this year, UMG expanded its partnership with China-based Tencent Music Entertainment, parent of streaming platforms QQ Music, KuGou, Kuwo and WeSing. In 2021, UMGC became the first major music company to establish multiple frontline label operations across China with the launch of Republic Records China, and the re-launch of historical labels Polygram Records China and EMI China alongside Universal Music China.