Facebook and Universal Music Group Strike Up Unprecedented Global Licensing Agreement

Herbert Rhodes
December 22, 2017

Facebook signed a multiyear licensing deal that lets the social network carry songs and artists from the world's biggest record label, Universal Music Group, across its platforms.

Specifics? How about this?

The companies explained that the partnership will give Facebook and Instagram users the ability to upload and share videos that contain licensed music. Over time, this could expand to users being able to access the archives of UMG music as part of the social platforms. Users can easily opt to watch music videos on YouTube for free, potentially making it more hard to convert some of its users into paying Remix subscribers.

The companies say they plan to create a roadmap for delivering "new music-based experiences online".

A successful music streaming service would strengthen YouTube's relationships with music rights holders. "We are excited to bring that to life on Facebook, Instagram, Oculus, and Messenger in partnership with Universal Music Group", said Tamar Hrivnak, Facebook's head of music business development and partnerships.

More news: Bill Belichick Lessens Alex Guerrero's Access to the Patriots

The agreement will have a major effect on both how the consumer experiences social media, how the music industry uses social media for its product, and how artists are compensated for their work.

By moving to appropriately license music on its platform, Facebook is also opening the door for further control on user-generated content.

Over the past few years, Facebook has been more aggressive with removing videos with copy-written music, but this could allow the rules to be slightly more lax while having UMG taking a cut of ad revenue.

Facebook declined to comment about its music strategy beyond a press release. In the pipeline, it also paves the way for a potential Facebook Music service, which could rival Spotify and Apple Music for on-demand streaming playback. In November 2015, Facebook hit 8 billion average daily video views, double the figure reported just seven months earlier.

Other reports by TheSundaySentinel

Discuss This Article