In a deal that is the first of its kind, Universal Music Group (UMG) and Facebook have announced a partnership. This is the first major music company to license its recorded and publishing catalog for social experiences — including video — across the social media platform. The deal will also include Instagram and Oculus.
The agreement will have a major effect on both how the consumer experiences social media, how the music industry uses social media for its product, and how artists are compensated for their work. For the user, they will now be allowed to legally upload and videos with UMG licensed music, and will be able to personalize their experiences across the platforms. Over time, this could expand to users being able to access the archives of UMG music as part of the social platforms.
In terms of UMG, the move will monetize the use of music in social media for its artists. And while we don’t know exactly what kind of collaborations this might bring or the “new music-based products” and “social features” that are promised, it is easy to imagine all types of things from exclusive premieres to social media only content to exclusive access for users. Really, the sky is the limit for how a music partnership with the social media giant could look. There is also speculation that this could bolster Facebook’s attempts to get further into the video market with high-end video content.