Universal Music Group (UMG), the world’s largest music label, has announced the expansion of its agreement with Facebook parent company, Meta Platforms, to create new opportunities for UMG’s artists and songwriters across Meta’s vast social media ecosystem.
UMG, which represents global superstars such as Taylor Swift and Billie Eilish, was the first major music company to licence its content to Facebook in 2017. This new agreement builds on that relationship, further integrating music into Meta’s platforms, including Facebook, Instagram, Messenger, and, for the first time, WhatsApp.
The updated deal also addresses the critical issue of compensation for artists and songwriters, ensuring they are fairly paid for the use of their work across Meta’s services, UMG said in a statement.
This announcement follows UMG’s decision in late July to end its partnership with Meta for the streaming of premium music videos, citing lower popularity of such content on Facebook compared to other music products. Despite this, UMG has been active in securing its position in the digital landscape, having signed a new licensing agreement with TikTok in May, which restored its music catalogue to the popular social media platform.
UMG’s shares recently took a hit, dropping more than 23% in a single day last month after the company reported weaker-than-expected streaming and subscription revenues for the second quarter, disappointing investors. The new agreement with Meta could be seen as part of UMG’s strategy to strengthen its presence in the evolving digital music market.
