Goal and Universal Music Group (UMG) have announced the signing of an expanded global, multi-year agreement, which significantly expands both creative and commercial opportunities for UMG artists and Universal Music Publishing Group (UMPG) songwriters across the full range of Meta platforms. This includes not only the already well-known Facebook, Instagram, Messenger, Horizon y Threadsbut also incorporates for the first time WhatsAppthe popular instant messaging application.
The inclusion of WhatsApp in this deal is particularly notable as it will allow its users to share UMG-licensed music directly within the app. According to UMG, this expansion to WhatsApp “unlocks new value for UMG artists and songwriters in the future,” opening up a completely new channel for distribution and monetization of music.
But the deal goes beyond just music licensing. Meta and UMG have stated their intention to work together to address one of the hottest topics in the music industry today: user-generated content. artificial intelligence (AI) unauthorized. This collaboration seeks Protecting the interests of artists and composers in the face of the challenges posed by the growing presence of AI in musical creation.
The announcement comes at an interesting time for both companies. Just two weeks ago, UMG specifically mentioned Meta in its fiscal second quarter results, noting a slight decline in ad-supported streaming revenue. Part of this decline was attributed to Meta’s decision to Stop licensing premium videos for Facebook in May, because they proved “less popular with Facebook’s user base than other music products.”
However, far from being a setback, this new deal appears to have created new revenue opportunities for Universal, especially in the space of short format videos and through the additional licensing of UMG’s catalogue to WhatsApp. This demonstrates the ability of both companies to quickly adapt to changing consumer preferences and market dynamics.
The current agreement is based on a relationship that dates back to 2017when UMG became the first major music company to license its recorded and publishing music catalogs on Facebook platforms. Since then, the partnership has steadily evolved, with renewals in 2022 that expanded income sharing and enhanced the Meta community’s engagement with the UMG catalog.
Executives from both companies have expressed their enthusiasm for this new phase of their collaboration. Tamara HrivnakVice President of Music and Content Business Development at Meta, highlighted how this partnership recognizes the power of music to connect people, not only on established platforms like Instagram and Facebook, but also in new ways on WhatsApp and beyond.
For its part, Michael Nash, Chief Digital Officer and Executive Vice President of Universal Music Group, praised Meta’s ongoing commitment to artists and songwriters, and expressed his satisfaction with the shared vision of respecting human creativity and fairly compensating creators.
This agreement comes at a time when the music industry is undergoing a rapid digital transformation. The growing importance of social media in music promotion and distribution, coupled with the challenges posed by new technologies such as AI, make collaborations like this crucial for the future of the industry.
