Terms of the deal were not disclosed.
The partnership, the first between the social media giant and a major music company, will allow the social media users to upload and videos that contain licensed content. "In time", a press release on the partnership noted, "functionality will expand to enable access to a vast library of music across a series of social features". Users can easily opt to watch music videos on YouTube for free, potentially making it more hard to convert some of its users into paying Remix subscribers.
Facebook head of music Tamara Hrivnak said the deal would allow Facebook users to "open up creativity, connection and innovation through music and video".
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Per The Verge, Facebook has also been in similar talks with Warner Music Group and Sony Music Group.
With this deal, the companies hope to "advance the interests of recording artists and songwriters while enhancing the social experience of music for their fans", says Michael Nash, UMG's Executive Vice President of Digital Strategy, in a statement. If later music-based social experiences are deemed indicative of a track's popularity, for example, then it's easy to imagine a scenario in which artists and labels start pushing for Facebook and related "experience" stats to be considered on the Billboard charts. "We are excited to bring that to life on Facebook, Instagram, Oculus and Messenger in partnership with UMG", she said today.
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YouTube is on its way to launch its new paid music service which will be out by March next year. On Facebook and Instagram, that might involve new groups built around specific artists or genres, which will now be able to legally share videos - just as long as they're from UMG's catalog.
By moving to appropriately license music on its platform, Facebook is also opening the door for further control on user-generated content.
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