Facebook and Universal just cut a huge music licensing deal

22 December, 2017, 01:24 | Author: Jacqueline Daniels
  • Facebook and Universal just cut a huge music licensing deal

The deal marks an important milestone in the social company's ambitions to compete with Google's YouTube, now the most popular destination online for listening to music.

The two parties will also partake in developing 'experimental new music-based products to these Facebook platforms, with the goal of catalysing innovation to develop the next generation of music products that best engage social consumers'.

Initially the partnership will mean that users will be able to upload videos that contain licensed music to the three platforms. They hinted that more music features could be coming.

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Warner Music and Sony also extended deals with YouTube, and according to insiders they will likely sign deals with Facebook following Thursday's UMG news.

"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 while enhancing the social experience of music for their fans", Nash said.

The other major record companies are nearing similar deals, sources tell CASHBOX, A joint statement from the company said the deals will "serve as a foundation for a strategic partnership roadmap that will deliver new music-based experiences online".

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Over the past year, the Silicon Valley tech titan has been assembling a team of music industry professionals, led by Tamara Hrivnak, a lawyer who worked as director of music partnerships for Google Play and YouTube and earlier served as VP of digital strategy & business affairs for Warner/Chappell Music Publishing, Hrivnak came on board in January and has overseen negotiations with music rights holders. YouTube has received criticism for not adequately paying artists for streams of their music videos.

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

With those tools in place and this new deal, Facebook is another step closer in its quest to be a destination for high-end video.

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