Universal Music and Meta Enhance Music Licensing Agreement, Reports Reuters

Universal Music Group (UMG), the largest music label globally, announced on Monday an expanded partnership with Meta Platforms, aiming to create new opportunities for its artists and songwriters across Meta’s social media channels.

UMG highlighted that it was the first major music company to license Facebook back in 2017. This new agreement is expected to further enhance music-related options within Meta’s ecosystem. The deal encompasses all of Meta’s principal platforms, including Facebook, Instagram, Messenger, and, for the first time, WhatsApp.

The updated agreement also emphasizes fair compensation for artists and songwriters, according to UMG.

In late July, the music label terminated a partnership with Meta regarding the streaming of premium music videos, citing that this format was less appealing to Facebook’s audience compared to other music offerings.

Additionally, UMG, which controls over a third of the market and is valued at $54 billion, reached a new licensing deal with TikTok in May, reinstating its songs and artists on the social media platform.

Last month, UMG’s shares plummeted more than 23% in a single day following disappointing streaming and subscription revenue figures for the second quarter, which fell below investor expectations.