Universal Music Group and Meta ink new global deal, covering Facebook, Instagram... and WhatsApp

Meta, the parent company of Facebook, and Universal Music Group (UMG) have signed an expanded global deal. This multi-year agreement enhances creative and commercial opportunities for UMG artists and songwriters across Meta's platforms, including Facebook, Instagram, Messenger, Horizon, Threads, and for the first time, WhatsApp. Users can now share licensed UMG music within WhatsApp.

The partnership aims to unlock new value for UMG artists and songwriters and will address unauthorized AI-generated content affecting them.

The announcement follows UMG's Q2 earnings, reporting a 9.6% YoY revenue increase but a 3.9% decline in ad-supported streaming revenue. UMG's CFO, Boyd Muir, noted that a decline in licensing premium videos on Facebook contributed to this dip. Meta's decision to stop these licenses was due to low popularity among Facebook users.

Despite the revenue loss from premium video licensing, the new agreement is expected to create new revenue streams for UMG in short-form video and through additional WhatsApp licensing.

UMG's latest agreement builds on a strategic framework established in their landmark 2017 agreement, which made UMG the first major music company to license its catalog across Facebook’s platforms. Meta has been recognized as a pioneering partner for music on social media.

Tamara Hrivnak, VP of Music and Content Business Development at Meta, expressed enthusiasm for renewing the partnership, emphasizing its role in connecting fans and artists across platforms. Michael Nash, Chief Digital Officer at UMG, highlighted Meta’s commitment to respecting artist rights and addressing AI-generated content issues.

Recent collaborations between UMG and Meta have included campaigns for artists like Billie Eilish, Karol G, and Taylor Swift.