Universal Music Group expands partnership with Meta
The expanded agreement encompasses all of Meta's major platforms, including Facebook, Instagram, Messenger, and, for the first time, WhatsApp.
Universal Music Group (UMG), the planet’s most prominent music label, reported an expanded deal with Facebook-parent Meta Platforms on Monday to develop new opportunities for artists and composers across Meta’s social platforms.
Universal Music Group (UMG), the world’s largest music label, announced on Monday an expanded agreement with Meta Platforms, the parent company of Facebook, to create new opportunities for its artists and songwriters across Meta’s social media platforms.
This move builds on UMG’s initial licensing partnership with Facebook established in 2017.
Broadened Reach Across Meta’s Platforms
The expanded agreement encompasses all of Meta’s major platforms, including Facebook, Instagram, Messenger, and, for the first time, WhatsApp.
UMG, which represents globally renowned artists like Taylor Swift and Billie Eilish, highlighted that this partnership would significantly enhance the integration of music within Meta’s ecosystem, offering new ways for artists to engage with audiences.
Focus on Artist Compensation
In addition to broadening the scope of collaboration, the renewed agreement also addresses compensation for artists and songwriters, ensuring that they are fairly remunerated for their work across Meta’s platforms. This aspect of the deal underscores UMG’s commitment to safeguarding the rights and earnings of its artists in the digital age.
Shifting Strategies and Market Reactions
This development comes shortly after UMG decided to end its partnership with Meta for streaming premium music videos in late July, citing lower popularity of this product among Facebook’s user base compared to other music-related offerings.
However, UMG continues to explore and expand its digital strategies, as evidenced by its recent licensing agreement with TikTok in May, which reinstated its catalog of songs and artists on the platform.
Despite these strategic moves, UMG faced a significant market setback last month when its shares dropped by more than 23% in a single day.
This decline was triggered by weaker-than-expected streaming and subscription revenues for the second quarter, disappointing investors and highlighting the challenges faced by the music industry in the evolving digital landscape.
