Facebook signs deal with music label Universal Music

Posted December 22, 2017

The move marks a new foray into music by Facebook, which despite its global conquest had been low-key in developing music functions compared with fellow tech titans Apple, Google and Amazon.

Before anything like that, though, there'll be support for sharing music and music videos with other social network users.

Right now, if Facebook's regular users upload videos that contain Universal's music, the videos will get taken down.

"In time, functionality will expand to enable access to a vast library of music across a series of social features". The companies announced the news in a joint press release on Thursday.

The deals better position YouTube to launch its upcoming music streaming service.YouTube plans to launch a new music streaming subscription service, internally dubbed "Remix", in March 2018.

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.

Adding that the two parties are creating "a dynamic new model for collaboration between music companies and social platforms", UMG's Executive Vice President of Digital Strategy Michael Nash declared: "This partnership is an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing - they thrive together".

The agreement could prove especially beneficial for Universal Music Group who's catalog includes top musical artists in today's pop culture like Taylor Swift, Lady Gaga, Kanye West, and Lana Del Rey. YouTube has received criticism for not adequately paying artists for streams of their music videos.

Video is a victor on Facebook. Zuckerberg on an earnings call earlier this year described video as a "mega-trend" which will shape the future of social media.

Facebook's deal with Universal Music Group comes as the world's largest social media site is making a big push into video to keep users on its site and attract advertisers.