Facebook, Universal Music Group Reach Global Licensing Deal

The groundbreaking deal means artists such as Taylor Swift Selena Gomez Kayne West and Mariah Carey can be used as soundtracks to user videos uploaded to the site

Facebook, Universal Music Group Reach Global Licensing Deal

Terms of the deal weren't disclosed.

The deals better position YouTube to launch its upcoming music streaming service.YouTube plans to launch a new music streaming subscription service, internally dubbed "Remix", in March 2018.

The partnership, the first between the social media giant and a major music company, will allow the social media users to upload and videos that contain licensed content. Eventually, the functionality of the agreement will expand across other social features, including Messenger, with users being able to access a vast library of music.

Universal Music Group also has signed an agreement with YouTube.

YouTube signed a long-term agreement with Universal Music Group and Sony Music, two of the world's top three record labels, Bloomberg reports. 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.

It was not immediately clear, however, how Universal and its artists would be compensated for the use of their music. "Music lovers, artists and writers will all be right at home as we open up creativity, connection and innovation through music and video", Tamara Hrivnak, Facebook's head of music business development and partnerships, said in a statement.

The partnership, he adds, is "an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing - they thrive together". The move will soon bring UMG's music catalog to Facebook, Instagram, and Oculus. 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. And previous year, FB founder Mark Zuckerberg told analysts that Facebook users watched an average of 100 million hours of video on the platform every day, though it has struggled to monetize that traffic.

Facebook, based in Menlo Park, Calif., is trying to get people to watch and share more videos on its platform.

Latest News