Facebook steps into YouTube with Universal Music Deal

Striking deals with Facebook also gives record labels a way to put pressure on YouTube

Bloomberg 

If Facebook wants to be more influential and valuable, it has to be a platform that garners the trust of its users and advertisers. Photo: iSTOCK

signed a multiyear licensing deal that lets the social network carry songs and artists from the world’s biggest record label, Universal Music Group, across its platforms.
 
Under the accord, users will be able to upload Universal’s songs and share music through Facebook, Instagram and virtual-reality technology, the firms said Thursday in a statement. Financial terms weren’t disclosed. The deal sets up as a more direct competitor to Google’s YouTube, the most popular destination online for listening to music. Both giants are battling for a bigger share of people’s time, and music rights could help give users new ways to engage with its services.
 
Striking deals with also gives record labels a way to put pressure on YouTube, which has become a powerful force in the music industry as a marketing tool and a way to introduce new artists. Google’s video site signed its own new long-term agreement with Universal Music, owned by Vivendi SA, and with this month, promising stronger policing of user uploads of copyrighted songs and paving the way for a new paid service after two years of tumultuous negotiations.  
                

First Published: Fri, December 22 2017. 02:34 IST