Financial terms weren't disclosed, though its likely UMG was the beneficiary of a whopping advance.
Over the past few years, Facebook has been more aggressive with removing videos with copy-written music, but this could allow the rules to be slightly more lax while having UMG taking a cut of ad revenue. For the user, they will now be allowed to legally upload and videos with UMG licensed music, and will be able to personalize their experiences across the platforms. 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. Until now, Facebook removed any user-posted videos containing copyright music. We are excited to bring that to life on Facebook, Instagram, Oculus and Messenger in partnership with UMG.
However it's clear that both Facebook and UMG are hoping to turn music into more of a "social experience" if they can.More news: Sen. McCain returning to Arizona, will miss tax bill vote
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". "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".
YouTube is on its way to launch its new paid music service which will be out by March next year.More news: Government Requests for Facebook user data continue to increase worldwide
With Facebook's ever-growing video platform, getting licensing agreements in place sets the groundwork for appropriate compensation when using artist content.
Universal has certainly been busy on that front: the Facebook announcement comes just days after the company revealed a new licensing deal with YouTube - also a global, multi-year agreement - which is seen as a step towards that platform's new "Remix" streaming service in 2018.More news: GasBuddy projects that United States gas prices will be most expensive since 2013