Facebook announced it signed a licensing deal with Universal Music Group on December 22. The deal helps the social media giant to fulfill its promise to offer personalized and interactive music experience to users for its two billion users.
Universal Music has been home for some of the biggest artists in the music industry including Elton John, The Beatles, Lady Gaga, and others. This deal would help the label earn more revenue from songs in the internet sharing age.
Music recordings and videos from Universal Music Group will be licensed for its use on Facebook along with Instagram and Oculus, a virtual reality site owned by Facebook.
The two companies, in a joint statement, said the development of more personalized functions are in process in a bid to “develop the next generation of music products that best engage social consumers.”
As music is shared on Facebook consistently, the firm has been endeavoring to remove copyrighted content. Fans have been uploading music or videos, or linking them to other sites such as YouTube and Spotify.
The financial terms of the agreement have not been released yet. A senior executive at Universal Music said the partnership between music industry and social media platforms is a “dynamic new model”.
“This partnership is an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing — they thrive together,” said Michael Nash, the label group’s executive vice president of digital strategy.
This deal would help artists and record label to be fairly compensated.