Tuesday, 11 December, 2018

YouTube seals deal with top music label amid streaming moves

Future Business Future Business
Derrick Tucker | 22 December, 2017, 01:23

Facebook on Thursday signed a multiyear licensing deal that lets its users post videos containing songs from the world's biggest record label, Universal Music Group.

The licensing deal could help Facebook better compete with Alphabet Inc's YouTube since music videos are the most popular category on the site, said Brian Wieser, an analyst at Pivotal Research.

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.

"Together, Facebook and UMG are creating a dynamic new model for collaboration between music companies and social platforms to advance the interests of recording artists and songwriters while enhancing the social experience of music for their fans", comments Michael Nash, Executive Vice President of Digital Strategy, Universal Music Group.

Through this new arrangement, users can upload and share homemade videos that feature music from the UMG library backdrop and, assuming the content itself doesn't upset viewers, the clips won't be yanked for breaching copyright.

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A successful music streaming service would strengthen YouTube's relationships with music rights holders. We are excited to bring that to life on Facebook, Instagram, Oculus and Messenger in partnership with UMG.

The other major record companies are nearing similar deals, sources tell CASHBOX, A joint statement from the company said the deals will "serve as a foundation for a strategic partnership roadmap that will deliver new music-based experiences online".

Terms of the deal weren't disclosed. YouTube has received criticism for not adequately paying artists for streams of their music videos.

Facebook, based in Menlo Park, Calif., is trying to get people to watch and share more videos on its platform. Seeing this as "Facebook strikes deal to make its own Spotify" is missing the bigger opportunity, but it's very early days.

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