Facebook parent company Meta and Universal Music Group have signed an expanded global, multi-year agreement.
UMG said in a press release on Monday (August 12) that the new agreement will “further develop creative and commercial opportunities” for UMG artists and Universal Music Publishing Group songwriters on the Meta global platform network, including Facebook, Instagram, Messenger, Horizon, Threads And, for the first time, WhatsApp.
Incorporate Meta’s instant messaging service, WhatsApp, mean Users can now share UMG’s licensed music within the app.
UMG said on Monday that its partnership with Meta to license music for WhatsApp will “bring new value to UMG artists and songwriters going forward.”
Additionally, as part of the new partnership, Meta and UMG say they will work together to “address unauthorized issues and more.” AI-The content generated may impact artists and songwriters”.
Today’s announcement comes two weeks after UMG specifically mentioned Yuan Second-quarter earnings results are on the music company calendar, covering the three months to the end of June.
UMG’s overall revenue grew in these quarterly results Annual increase of 9.6%UMG announced a slight decline in its ad-funded streaming revenue, down Annual growth of 3.9%.
UMG’s finance chief explains that part of the reason for this decline is Boyd Muirthat is Yuan Stop licensing premium videos Facebook Graduated from UMG in May. He said Meta made the decision because these high-end music videos “are not as popular with the Facebook user base as other music products.”
Muir Added during UMG’s second-quarter earnings call in July: “Yuan We are now focusing on other areas involving music content, which we are working together to expand as part of a multi-faceted update.
This “multifaceted renewal” has now been signed and sealed, with UMG and Facebook jointly stating in a media release today: “The new agreement Further expand monetization opportunities for UMG and its artists and songwriters through short-form videosbuilds on Meta and UMG’s shared record of innovation and collaboration.
To summarize: UMG lost some potential income Yuan Since the latter company decided to stop licensing premium videos Facebook…but the new deal announced today appears to have created new Revenue opportunities for Universal in the short film space (and likely from additional licensing of Universal’s catalog to Whatsapp).
(P.S. UMG Competitors Warner Music Group Last week’s estimate, in current trading Yuan, Removing licensed premium music videos from Facebook will result in $10 million per quarternegatively impact WMG’s future revenues.
According to Monday’s announcement, UMG’s new agreement with Meta builds on the “strategic framework” established by a “milestone agreement” reached in 2017 with the company then known as Facebook.
Under the 2017 agreement, UMG became the first major music company to license its recorded music and music publishing catalog on the Facebook platform. UMG said on Monday that Facebook “has played a pioneering role as the first fully licensed music partner among major social media platforms.”
Meta and Universal previously signed an agreement two years ago in 2022.
Chairman and CEO, Universal Music Group Sir Lucian Grange During UMG’s second-quarter 2022 earnings call, he confirmed that his company had signed a licensing agreement with Meta to “expand revenue share and enhance [the] Meta-community interaction with our catalog.”
The agreement includes the use of UMG’s music in Meta’s music business UGC video payment model. Meta announced in July 2022 that it would begin sharing a percentage of advertising revenue directly with music rights holders of certain user-generated video content of 60 seconds or longer on Facebook.
“We are pleased to announce our renewals with Universal Music Group and Universal Music Publishing Group, both innovators in social media for music, and in particular Meta’s family of apps.”
Tamara Hrivnak, Meta
Tamara Hrivnak, vice president of business development for music and content at Meta, added: “We are excited to announce our renewals with Universal Music Group and Universal Music Publishing Group, both innovators in social media music and especially the number of Meta family of apps. .
“This collaboration is built on the understanding that music can help us connect and bring fans, artists and songwriters closer together, not just on established platforms like Instagram and Facebook, but also on platforms like WhatsApp. New ways to collaborate.
“We are extremely grateful to the Universal team and look forward to strengthening our partnership in the future.”
“We are pleased that Meta shares our artist-centered vision of respecting human creativity and equitably compensating artists and songwriters.”
Michael Nash, Universal Music Group
Michael Nash, chief digital officer and executive vice president of Universal Music Group, said: “Since our landmark agreement in 2017, Meta has been committed to demonstrating its importance by helping expand the importance of music in its global network of engaged communities and platforms. A commitment to artists and songwriters to create new opportunities and applications where music amplifies and guides engagement and conversation.
“We’re excited that Meta shares our artist-centered vision of respecting human creativity and equitably compensating artists and songwriters.
“We look forward to continuing to work together to address unauthorized AI-generated content that may impact artists and songwriters so that UMG can continue to protect their rights now and in the future.”
In recent months, Universal and Meta have collaborated on the Meta platform to create campaigns for UMG artists, including Billie Eilish, Karol G, Taylor Swift, and more.global music business
