YouTube seals deal with top music label amid streaming moves


They'll also be able to personalize their music experiences while sharing videos.

Right now, if Facebook's regular users upload videos that contain Universal's music, the videos will get taken down. Facebook has a longstanding belief of letting users post freely. While UMG is the first label to sign a licensing deal with Facebook, it won't be the last, as Facebook has been in talks with Warner Music Group and Sony Music Group as well, according to multiple sources. "Going forward, the companies will experiment hand-in-hand to introduce new music-based products to these Facebook platforms", the two companies say, "including Messenger, with the goal of catalyzing innovation to develop the next generation of music products that best engage social consumers".

Crucially, the deal does not give Facebook the right to create its own version of Vevo, the music video service owned by the music labels that generates most of its views on YouTube.

Neither Facebook nor UMG are saying how much today's deal is worth, only describing it as a "global, multi-year agreement".

The deal comes just two days after Universal signed a a similar partnership with YouTube.

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"There is a magnetic relationship between music and community". Additionally, ad-supported streaming services like YouTube and SoundCloud paid millions of dollars less than subscription platforms like Spotify did in 2016, according to Digital Music News. Messenger, Instagram, and Facebook all made the Top 6 of the 2017 Top Apps Charts.

"This partnership is an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing-they thrive together", Nash continued.

Facebook declined to comment about its music strategy beyond a press release. For context, music streaming leader Spotify has converted around 40% of its active users into paying subscribers.

While Facebook remain mum if they are targeting YouTube with this deal, several Universal Music Group leaders are concentrating on making sure that professional artists continue to make a living as details of this partnership are rolled out.