Universal Music Group and Facebook sign multi-year licensing agreement
22 December, 2017, 01:22 | Author: Rolando Keller
Depending on the nature of future music-based social media experiences made possible by this agreement, the impact on the music industry could be palpable.
The agreement aims to foster increased engagement between artists and fans online by first allowing users to upload videos containing licensed music. 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. Today the social network announced its first major-label licensing deal, with Universal Music Group. 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.
However it's clear that both Facebook and UMG are hoping to turn music into more of a "social experience" if they can.
"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", he added.
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Facebook head of music Tamara Hrivnak said the deal would allow Facebook users to "open up creativity, connection and innovation through music and video".
And the big question - the reason music rightsholders are genuinely excited about Facebook going deeper on music, beyond any big cheques being waved at them - is what can Facebook do that *isn't* just another $9.99-a-month music-streaming service with or without a free tier?
And in August, the company launched Facebook Watch in the United States, a sub-section on the platform that like YouTube offers unique, quirky videos by homebody presenters unlikely to be cast by television executives. That deal promised to give "recording artists songwriters improved content flexibility and growing compensation from YouTube's ad-supported and paid-subscription tiers, while also furthering YouTube's commitment to manage music rights on its platform".
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