Universal Music strikes ‘landmark’ strategic distribution deal with China’s Modern Sky

Pictured [L-R]: Timothy Xu, Lihui Shen, Adam Granite

Universal Music Group has struck what it claims to be a “landmark” strategic distribution agreement with Modern Sky, a prominent China-headquartered independent music company.

UMG said in a press release today (November 20) that the deal will provide Modern Sky’s “extensive catalog” and roster of artists with access to UMG’s worldwide distribution network.

According to UMG, the deal will “also [open] doors for expanded collaboration” between the two companies and “elevate and introduce China’s original music and vibrant youth culture to international audiences”.

Founded in 1997, Modern Sky is home to a roster of over 150 artists, including emerging talent such as Matt Lv, Click #15, Aflou, DOUDOU, Frankfurt Helmet, Shii.

The label also owns what UMG says is “a massive catalog” of “thousands” of original songs, with “hundreds” of new tracks added each year. The label has released over 500 albums.

In an exclusive op-ed for MBW seven years ago (in 2017), Modern Sky’s founder and CEO Shen Lihui told us about the “massive commercial opportunity for music companies across the globe in China”.

He added that there’s “even greater potential if we find ways to work together across the east/west divide, bringing our cultures closer together”.

At the time, Modern Sky’s CEO estimated that there were around 365 million people in China that would “happily buy into culture and entertainment – young people that have newly disposable income to spend on leisure”.

He added: “It may not be the entire 1.2 billion population, but it’s still the equivalent of the entire USA buying into music. Imagine that?”

To that end, Modern Sky’s new global distribution partner – and the world’s largest music rightsholder – Universal Music Group, has been ramping up its presence in the market in recent years.

At UMG’s Capital Markets Day in September,  Adam Granite, EVP of Market Development, discussed Universal’s strategy in ‘high potential markets’, revealing that UMG had just opened its fifth office in Greater China, in Shenzhen.

That new locale joined UMG offices in Hong Kong, Taiwan, Beijing, and Shanghai in China, which was the world’s second-largest digital music market in 2023.

Just last month, Virgin Music Group, Universal Music Group‘s global indie artist and label services division, acquired Outdustry, an artist and label services and rights management business focused on ChinaIndia and other “high-potential markets”.

In making the announcement, Timothy Xu, Chairman and Chief Executive Officer of Universal Music Greater China, said: “We are thrilled to collaborate with Modern Sky, a label that has been instrumental in defining China’s independent music culture and propelling it forward.”

“Together, we aim to amplify these voices on the global stage, celebrating the role of Chinese music in today’s cultural conversation.”

Timothy Xu,  Universal Music Greater China

Added Timothy Xu: “This collaboration not only broadens the global reach of Chinese music but also highlights the distinct energy and creativity that define China’s young generation today.

“Together, we aim to amplify these voices on the global stage, celebrating the role of Chinese music in today’s cultural conversation.”

“Joining UMG’s global network and its community of exceptional artists marks an exciting new chapter for us.”

Shen Lihui, Morden Sky

Shen Lihui, founder and CEO of Modern Sky, said: “At Modern Sky, we’ve always embraced an independent spirit and a forward-looking vision, committed to reflecting the cultural identity of China’s younger generation.

“Joining UMG’s global network and its community of exceptional artists marks an exciting new chapter for us. Through this collaboration, we’re thrilled 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.”

“We are excited to foster this two-way connection, expanding horizons for both Modern Sky and UMG artists around the world.”

Adam Granite, Universal Music Group

Adam Granite, Executive Vice President, Market Development, Universal Music Group, added:, “Modern Sky’s international reach and commitment to amplifying diverse Chinese voices make this partnership an exciting opportunity.

“This collaboration not only supports Modern Sky’s journey onto the global stage but also opens up opportunities for UMG’s international artists to connect with China’s audiences.

“We are excited to foster this two-way connection, expanding horizons for both Modern Sky and UMG artists around the world.”


In 2009, Modern Sky launched the Strawberry Music Festival, becoming China’s first large-scale outdoor music festival. Today, the company organizes over 30 music festivals annually and more than 1,000 performances across China.

Modern Sky has also accelerated its international expansion in recent years by establishing divisions in New York, Liverpool, and Tokyo.

In 2014, its first international music festival, Modern Sky Music Festival, was held in Central Park, New York.

Since then, it has hosted events in cities like Helsinki, Seattle, Los Angeles, and Toronto. In 2025, the Strawberry Music Festival will debut in Tokyo, with plans to expand into more international cities.

Modern Sky is credited by UMG as having been instrumental in shaping China’s indie music scene, producing over 500 albums and working with bands and artists in China including New Pants, Re-TROS, Second Hand Rose, Miserable Faith, Xie Tianxiao, Wutiaoren, Sound Fragment, Zhang Qiang, Ma Di, Yao Shisan, A Si, Yico Zeng and Tizzy T.

It has also worked with artists like BooM, KAFE.HU, P.K.14, Sober, Zuoxiao Zuzhou, Supermarket, Glamorous Pharmacy, The Dada, MRSEATURTULE, Mosaic, Queen Sea Big Shark, SPARROW, MERCADER, TheFallacy, The Big Wave, Muma, Joy Side, and others.Music Business Worldwide

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