It is understood that the agreement will see Universal Music provide music under pay streaming and downloading services, with access from outside the country to be blocked. VNG Corporation, operator of Zing.vn, is expected to strike deals with other individuals and international music companies as well.
ZIng.vn lost advertising contracts with Coca-Cola and Samsung earlier this month, as they pulled their advertising from the site due to illegal music downloads. Industry players expect that if the situation is left unchecked other advertisers will also pull their advertising from the site.
Universal Music, owned by French group Vivendi SA, has a diverse artist portfolio that includes Maroon 5, Rihanna and Taylor Swift.
In June, Apple officially opened an iTunes Store in Vietnam allowing local users to download international music and movie content.
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