Facebook has struck its first-ever deal to license music for video and other social experiences. (THR)
Universal Music Group and Facebook agreed on a multi-year deal that lets Facebook host content with the label’s licensed music across its network, including the main Facebook app, Instagram and Oculus. (Mashable)
According to a press release, the partnership will allow users to upload and share videos that contain licensed music and personalize their music experiences on Facebook, Instagram and Oculus. Eventually, functionality will expand to enable access to a vast library of music across a series of social features. (Variety)
Crucially, the deal does not give Facebook the right to create its own version of Vevo, the music video service owned by the music labels that generates most of its views on YouTube. Perhaps most important for Universal is that it now has a credible bargaining chip when it talks to Google’s YouTube. (Recode)