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Facebook signs deal with Universal Music Group over videos that contain songs

22 December 2017, 01:24 | Hattie Nash

Future Business

Future Business

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.

What does this mean for Vevo, the music-videos service whose main distribution channel has been YouTube, but whose deal with that platform is up for renewal in 2018 - just as (it seems) Facebook is planning to do a lot more with music video in various forms?

The multi-year agreement will be expanded later to include Facebook Messenger, Universal Music Group, according to Reuters.

Through this new arrangement, users can upload and share homemade videos that feature music from the UMG library backdrop and, assuming the content itself doesn't upset viewers, the clips won't be yanked for breaching copyright.

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"There is a magnetic relationship between music and community building", said Tamara Hrivnak, Head of Music Business Development and Partnerships, Facebook. Universal, a unit of French media conglomerate Vivendi SA, has rights to music from artists including Jay-Z, Rihanna, Bruce Springsteen and Justin Bieber. The move will soon bring UMG's music catalog to Facebook, Instagram, and Oculus.

Michael Nash, executive VP of digital strategy for Universal Music, stated the new deal was "an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing". "We look forward to Facebook becoming a significant contributor to a healthy ecosystem for music that will benefit artists, fans and all those who invest in bringing great music to the world". 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.

Facebook is trying to get people to watch and share more videos.

"With this deal, Facebook has licensed content from the biggest player in the biggest genre of video on YouTube", he said.



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