Facebook strikes first major music rights deal with Universal Music

22 December, 2017, 01:22 | Author: Grady King

"Together, Facebook and UMG are creating a dynamic new model for collaboration between music companies and social platforms to advance the interests of recording artists and songwriters", said Michael Nash, executive vice president of digital strategy, Universal Music Group".

The companies explained that the partnership will give Facebook and Instagram users the ability to upload and share videos that contain licensed music.

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.

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So, on the one hand this is what publishers and labels have been asking for in 2017 - an initial deal to license Facebook for the music contained within user-uploaded videos. The move will soon bring UMG's music catalog to Facebook, Instagram, and Oculus. Facebook says that in the pipeline there are plans to open up "a vast library of music" across multiple social features, though isn't saying exactly what that will entail.

Hrivnak, now Head of Music Business Development and Partnerships at Facebook, is quoted in the joint statement, pointing out the "magnetic relationship between music and community building".

While Facebook remain mum if they are targeting YouTube with this deal, several Universal Music Group leaders are concentrating on making sure that professional artists continue to make a living as details of this partnership are rolled out.

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The partnership comes days after Bloomberg reported that YouTube had signed a long-term agreement with Universal Music Group and Sony Music Entertainment.

While music postings are omnipresent on Facebook, the company attempts to take down embedded content that is copyrighted, with fans either uploading their own videos or linking to other sites such as YouTube and Spotify.

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

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