Universal Music, Facebook Sign Licensing Deal

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Of course, Facebook users could previously create videos with copyrighted music and share them to the network. The deal, announced on Thursday, also applies to Facebook's Instagram and its virtual reality arm Oculus. Facebook has a longstanding belief of letting users post freely. Eventually, the functionality of the agreement will expand across other social features, including Messenger, with users being able to access a vast library of music. 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.

The two parties will also partake in developing 'experimental new music-based products to these Facebook platforms, with the goal of catalysing innovation to develop the next generation of music products that best engage social consumers'.

In an escalation of competition with YouTube, Facebook has been flashing hundreds of millions of dollars to major record labels and music publishers so users can include songs in the videos they upload, according to Bloomberg News.

A successful music streaming service would strengthen YouTube's relationships with music rights holders.

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

YouTube is expected to launch a new paid music service next year after striking three deals with major labels this year, including UMG, which signed a second global, multi-year agreement with the site this week. On the other hand, now that Universal has its first licensing deal with Facebook, it opens up the door for other stuff down the road.

Another critical moment for the social media network happened when Facebook founder Mark Zuckerberg confronted President Trump on social media.

Not a coincidence: The press release announcing the deal quotes Tamara Hrivnak, the Facebook business exec who negotiated the deal with Universal. Messenger, Instagram, and Facebook all made the Top 6 of the 2017 Top Apps Charts.

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