Universal Music Group And Facebook Strike Major Licensing Deal

Lena Tucker
December 22, 2017

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. Earlier this week, the company cut a deal with YouTube on a global partnership that's expected to better monetize users of the streaming video site. "Going forward, the companies will experiment hand-in-hand to introduce new music-based products to these Facebook platforms, including Messenger". "In time", a press release on the partnership noted, "functionality will expand to enable access to a vast library of music across a series of social features".

Adding that the two parties are creating "a dynamic new model for collaboration between music companies and social platforms", UMG's Executive Vice President of Digital Strategy Michael Nash declared: "This partnership is an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing - they thrive together".

Attention, music lovers! Universal Music Group and Facebook are collaborating on a licensing deal that will enhance your social media experience. If later music-based social experiences are deemed indicative of a track's popularity, for example, then it's easy to imagine a scenario in which artists and labels start pushing for Facebook and related "experience" stats to be considered on the Billboard charts.

"There is a magnetic relationship between music and community building", said Tamara Hrivnak, Head of Music Business Development and Partnerships, Facebook.

YouTube has signed a second global agreement with a major music company "Universal Music Group" as a part of its plan to extend its subscription businesses segment. The move will soon bring UMG's music catalog to Facebook, Instagram, and Oculus. YouTube has received criticism for not adequately paying artists for streams of their music videos. There is also speculation that this could bolster Facebook's attempts to get further into the video market with high-end video content.

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