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Facebook and Universal Music Ink Multi-Year Agreement

Universal MusicIn what is considered an unprecedented music deal, Facebook and Universal Music Group (UMG) have signed a global multi-year agreement.

Under the agreement, UMG would “license its recorded music and publishing catalogs for video and other social experiences across Facebook, Instagram, and Oculus.”

In other words, Facebook users can upload videos that contain licensed music and personalize their music experience on the three platforms.

The two companies announced the agreement on Thursday.

Expansion of Functionality

In the announcement, UMG said the privilege “will expand to enable access to a vast library of music across a series of social features.”

The agreement is a culmination of discussions between the world’s most extensive social network and music labels that were first reported by Bloomberg back in September.

(Read: Facebook Offers Hundreds of Millions of Dollars for Music Rights)

The Bloomberg article pointed out that the posting and viewing of video on Facebook had become popular the past years, but many of the videos featured music which Facebook didn’t own.

Under the law, copyright owners can tell Facebook to delete videos with an infringed material.

Eager to Strike a Deal

Facebook had reportedly wanted to come up with a deal with music labels so that it would no longer disappoint users, Facebook partners, and advertisers.

With the deal, Bloomberg said Facebook is out to attract “billions of dollars in additional advertising revenue” and “challenge YouTube as the largest site for advertising-supported video on the web.”

Tamara Hrivnak, head of Facebook’s music business development and partnerships, and Michael Nash, UMG executive vice president of digital strategy, lauded the deal.

Hrivnak said they are excited “to bring the magnetic relationship between music and community building to life” on Facebook, Instagram, and Oculus.

Nash, for his part, said UMG and Facebook have established “a dynamic new model for collaboration between music companies and social platforms.”

The deal with UMG was made just several days after Facebook rolled out free music and sound effects for video makers.

(Read: Facebook Releases Free Music and Sound Effects for Video Creators)

What’s Next?

Facebook and UMG have entered into an unprecedented music deal.

What are your thoughts on this development? Share them below.

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