Facebook steps into YouTube with Universal Music Deal

Facebook's Plan to Become a Video Hub

Facebook has a longstanding belief of letting users post freely.

UMG becomes the first major music company to license its recorded music and publishing catalogs for video and other social experiences across Facebook, Instagram and Oculus, according to a report from Variety.

In what may be music to the ears of Facebook users, they can now add some of their favorite songs to videos they upload and share.

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The move is the first step to competing with streaming giants such as Google-owned YouTube's over online music videos. In their joint statement, they talked about providing "new music-based experiences" including on Facebook Messenger.

Facebook signed a significant deal with the WWE to air and introduce a new 12 episode web series Mixed Match Challenge. It's unclear what music will be available to Facebook users or when. Up until past year, she was in charge of negotiating similar deals for YouTube. We are excited to bring that to life on Facebook, Instagram, Oculus and Messenger in partnership with UMG.

Universal Music's EVP of digital strategy Michael Nash also had his say, describing the deal as "a dynamic new model for collaboration between music companies and social platforms" and also "an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing - they thrive together".

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Tamara Hrivnak, head of music business development and partnerships, Facebook, said of the deal: "There is a magnetic relationship between music and community building". For context, music streaming leader Spotify has converted around 40% of its active users into paying subscribers. The service will include on-demand music streaming - similar to Spotify - and offer video clips.

Earlier this month, Facebook released its own collections of songs and song effects. That deal promised to give "recording artists songwriters improved content flexibility and growing compensation from YouTube's ad-supported and paid-subscription tiers, while also furthering YouTube's commitment to manage music rights on its platform".

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