Facebook and Universal Music Group strike deal for legal music use

Facebook just took a major step to boost its nascent video effort.

On Thursday, the social networking and Universal Music Group announced what is thought to be a multi-million dollar deal. The agreement will allow Facebook users to upload music licensed by Universal Music to the social networking site as well as to Facebook-owned Instagram and Oculus.

The agreement could have near- and long-term benefits for Facebook’s video ambitions. It should make it easier for users to upload videos that include copyrighted music. But it also could help the social network become a destination for music lovers — and help boost use of Facebook’s site.

“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.

Copyright issues have proven to be a thorn in Facebook’s side for years. When users post videos that include copyrighted music, rights holders frequently demand the company remove them from its site. Such takedowns not only consume company time and resources, but they can hinder user engagement.

With its Universal Music deal, Facebook will be protected from such demands — allowing videos with music from Universal artists to remain on the site. Although the agreement marks the first time the social media giant has made a deal with a large music company, Facebook is already in talks to strike similar deals with both Warner Music Group and Sony Music, according to The Verge.

– Excerpt from article by Zoe Bernard. See the full article here.