What UMG’s deal with Facebook means for the music industry

Since the announcement of Universal Music Group’s partnership with Facebook this morning, the impact on the music industry is already being recognised.

Not only will the deal allow users to legally upload videos containing licensed music, the partnership is expected to expand to give users’ access to UMG’s catalogue for use across “video and other social experiences” on Facebook Messenger, Instagram, and Oculus.

While deal terms haven’t been disclosed, Complex believes it may not be long until Facebook and related “experience” stats could be considered for the US Billboard charts.

As TechCrunch points out, the deal is a massive play to own the space dominated by YouTube; remember the misfire debut of its dedicated portal for video, Facebook Watch?

TechCrunch also believes the deal will see challenge other tech companies like Spotify and Musical.ly, which operate in the combined music/social space. Spotify is increasing expanding its features to connect with music fans, while Musical.ly has an audience of young fans who create their own lip-sync music videos.

Meanwhile, Uproxx has reported on whispers that the deal could see Facebook rolling out high-end video content, including exclusive premieres

TIO‘s own journalist Lars Brandle reported the deal signals “the beginning of the end of a sometimes frosty relationship between the music business and the tech giant”.

“[Facebook] has been accused of building its empire off the back of others’ copyright without passing on the stuff that folds,” Brandle wrote.

Facebook’s journey into the music industry should be easier from here on in. If it can prove its deal with UMG boosts music sales, merchandise or concert tickets, then the two other majors and indies should follow suit.

Michael Nash, UMG’s Executive VP of Digital Strategy, said in a statement:

“This partnership is an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing—they thrive together.”

This article originally appeared on The Industry Observer, which is now part of The Music Network.