Facebook has
announced a licensing deal with Universal Music Group, its first with a major
label, as the social media giant promised more personalised, interactive music
features for its two billion users.
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.
Universal - home
to some of the biggest names in music from The Beatles to Elton John and Lady
Gaga - billed the agreement as its latest success in securing more revenue from
songs in an age of round-the-clock Internet sharing.
Universal will
license its music recordings and videos around the world for use on Facebook as
well as on Instagram and the virtual reality site Oculus, which are both owned
by Mark Zuckerberg's company.
Facebook said
users will eventually have access to a vast library from Universal, allowing
them to upload licensed music or share it through Messenger.
The two
companies, in a joint statement, said they were developing more personalised
functions in a bid to "develop the next generation of music products that
best engage social consumers."
While music posts
are omnipresent on Facebook, the company attempts to take down embedded content
that is copyrighted, with fans either uploading their own videos or linking to
other sites such as YouTube and Spotify.
A senior
executive at Universal Music Group called the agreement, whose financial
details were not disclosed, a "dynamic new model" for the relationship
between the music industry and social media platforms.
"This partnership
is an important first step demonstrating that innovation and fair compensation
for music creators are mutually reinforcing - they thrive together," said
Michael Nash, the label group's executive vice-president of digital strategy.
"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," he said.
The announcement
comes two days after Universal inked a separate licensing agreement with
YouTube - long an irritant to the music industry which says the video site pays
too little in compensation.
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.
Facebook has
increasingly gone head-to-head with YouTube on its signature turf of videos.
Zuckerberg on an earnings call earlier this year described video as a
"mega-trend" which will shape the future of social media.
Last year, the
site made a concerted push into livestreaming with Facebook Live, letting users
with a smartphone broadcast everything from press conferences to their dinner
parties to the world at large.
And in August,
the company launched Facebook Watch in the United States, a sub-section on the
platform that like YouTube offers unique, quirky videos by homebody presenters
unlikely to be cast by television executives.
Facebook's
agreement with Universal - especially if competitors Warner Music and Sony
Music reach similar deals - could eventually raise questions for Vevo, a site
created in 2009 by the three big labels to monetise their videos