In an attempt to improve its emerging video efforts, Facebook has announced a multi-million-dollar deal with Universal Music Group. As per the agreement, Facebook users will be able to upload music licensed by Universal Music on Facebook as well as Facebook-owned companies, Instagram and Oculus. For quite some time now, Facebook has been in discussion with content providers like record companies for licensing until the social networking site signed a deal with UMG making it the first major label to sign “an unprecedented global, multi-year deal.”
This deal comes with long term benefits which could enhance Facebook’s video ambitions. Users will be able to upload videos that include copyright music very easily, which would make Facebook a destination for music lovers.
This partnership is expected to enhance user engagement. Reportedly, “the agreement is intended to serve as a foundation for a strategic partnership roadmap that will deliver new music-based experiences online.” In the future, the company also plans to introduce “music-based products” to platforms like Messenger in order to make the conversations more appealing for users.
“I wouldn’t be surprised if they do more musical licensing deals, because it gives their viewers a way to stay on the site longer if they’re showcasing music content, which is obviously a big driver of people’s time,” said Dan Rayburn, a streaming media expert and consultant at Frost and Sullivan.
Facebook has also launched a video editing tool known as Sound Collection which gives users a lot of high-quality audio tracks free. This tool also gives sound effects for creating videos and sharing them on Facebook and Instagram.
“Down the line, you’re likely to see more of these deals from Facebook,” said Rayburn. He added that Universal Music’s rivals are “thinking, Facebook has opened up their wallet for music, we’re certainly going to be talking to them now if we’re not already.”
Facebook has already started conversations for a similar agreement with Warner Music Group and Sony Music. There have been speculations about Facebook entering the music streaming market just like its peers, Apple and Spotify. However, nothing is confirmed as of now.