Universal Music Group and Meta Draft New Global Deal for Facebook, Instagram, and WhatsApp
The renewed deal between the two companies is set to “further evolve the creative and commercial opportunities” for both UMG artists and songwriters.
UMG Illustration by Pavlo Gonchar/SOPA Images/LightRocket via GI, Meta; Courtesy of Meta
Illustration by Pavlo Gonchar/SOPA Images/LightRocket via GI
Meta, the parent company of Facebook, has significantly expanded its global partnership with Universal Music Group (UMG) through a new multi-year deal. Announced today (August 13, 2024), the agreement will enhance creative and commercial opportunities for UMG artists and Universal Music Publishing Group songwriters across Meta’s platforms, including Facebook, Instagram, Messenger, Horizon, Threads, and for the first time, WhatsApp.
With this expansion, Meta’s messaging app WhatsApp will now allow users to share licensed music from UMG’s catalog, unlocking new revenue streams for UMG artists and songwriters. The deal also aims to address the challenges of unauthorized AI-generated content affecting artists and songwriters.
The announcement follows a recent dip in UMG’s ad-funded streaming revenues, which fell by 3.9% year-over-year. UMG’s CFO, Boyd Muir, attributed this decline to Meta’s decision in May to cease licensing premium music videos for Facebook, which were less popular with the platform’s users. “Meta is now focusing instead on other areas involving music content, and we are working together to expand these areas as part of a multifaceted renewal,” Muir said during UMG’s Q2 earnings call.
The new deal builds upon the strategic framework of the landmark 2017 agreement, which was the first major licensing arrangement for music across Facebook’s platforms. The 2022 agreement further expanded revenue sharing and community engagement with UMG’s music.
Tamara Hrivnak, VP of Music and Content Business Development at Meta, commented, “We are thrilled to announce our renewal with Universal Music Group, and Universal Music Publishing Group, both of whom are innovators for music on social media… This partnership builds on the recognition that music can help connect us and bring fans, artists, and songwriters closer together.”
Michael Nash, Chief Digital Officer & EVP at UMG, praised the expanded partnership: “Since our landmark 2017 agreement, Meta has consistently demonstrated its commitment to artists and songwriters by helping to amplify the importance music holds across its global network of engaged communities and platforms. We are delighted that Meta shares our artist-centric vision for respecting human creativity and compensating artists and songwriters fairly.”
The expanded deal promises to create new opportunities for music integration across Meta’s suite of apps, reinforcing the companies’ commitment to innovation and collaborative growth in the music industry.