Facebook and Universal Music strike huge agreement

Phillip Butler
December 22, 2017

The partnership, the first between the social media giant and a major music company, will allow the social media users to upload and videos that contain licensed content.

On Oculus, meanwhile, it gets potentially even more interesting. "Music lovers, artists, and writers will all be right at home as we open up creativity, connection, and innovation through music and video".

Per The Verge, Facebook has also been in similar talks with Warner Music Group and Sony Music Group.

A successful music streaming service would strengthen YouTube's relationships with music rights holders. 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. We are excited to bring that to life on Facebook, Instagram, Oculus and Messenger in partnership with UMG. Based on the partnership announced between the music group and YouTube, it sounds as though this agreement is a method to curb financial losses and the new products are a byproduct.

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. How and when will it "enable access to a vast library of music across a series of social features" and will that be an ad-supported business model or a subscription play?


Many industry insiders believe that Facebook's brand new venture with Universal Music Group may present a challenge for one of its biggest competitors.

Facebook declined to comment about its music strategy beyond the press release.

YouTube, which is owned by Google, is reportedly exploring the launch of a new streaming service in 2018 to compete with Spotify, Apple Music and other on-demand music services.

Can it create new, social-infused music formats - think what Musical.ly did with the 15-second lip-synch clip, although Dubsmash also deserves credit there - that will actually generate revenue for artists, songwriters and their rightsholders?

Other reports by Ligue1talk

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