Two of the world’s most popular online music-streaming services are the purchase of shares in another.
Spotify and China’s Tencent Music Entertainment is minority buy stakes in each other, the said company.
Neither the value of the deal, the new investment sizes were known, but the reports have suggested, they are both the participation below 10%.
Tencent music-Entertainment-owner, Tencent Holdings, the buy also separately, a minority stake in Spotify.
Spotify launched in 2008 and now offers music streaming from 140 million users worldwide, of which 60 million to pay for their premium advertising-free subscription.
The offer Spotify provides exposure to the Chinese music consumer market, because the country is not one of the 61 regions currently operates in.
The company is widely expected to list their shares on the stock exchange in the next year.
Although the details of the deal are still unclear, it sends a signal to investors that Spotify and thought hard about their strategy in China, said music industry analyst Mark Mulligan, managing Director of MIDiA Research.
“China is very much a missing link for Spotify,” he said. “As it advances in the direction on a public list, which is really a field must have ticked, in order to convince investors that it is truly a global player.”
Tencent Music Entertainment owns music streaming company, the QQ music and KuGou, which is a combined monthly user base of 450 million people.
Their parent company is one of China’s internet giant, is known for its wechat app and investment, are online gaming.
Mr Mulligan said that the cooperation with TenCent reduces some of the risks of Spotify a solo push into the tricky Chinese market.
The investment in TenCent, could also serve as a pillow Spotify should bring a music-streaming business to falter.
In contrast to the competitors Apple and Amazon, music streaming, Spotify is the focus.
“It is a Foundation for the emergency Plan B to fall when their core business starts,” he said.
Daniel Ek, Spotify founder and chief executive, said: “Spotify and Tencent Music Entertainment see significant opportunities in the global streaming music market for all of our users, artists, music, and business partners.
“This transaction is that both companies benefit from the global growth of streaming music.”