Universal Music Group and Meta expand their partnership as labels lean on social media
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Billion-dollar baby… Yesterday Universal Music Group and Meta announced a beefed-up version of their multiyear music-licensing deal, which makes UMG’s songs available to share on Meta’s apps (think: Reels soundtracks). UMG is the world’s largest record label, repping stars like Billie Eilish, Bad Bunny, and Taylor Swift. UMG’s tunes will be available on WhatsApp and Threads (in addition to FB and Insta). UMG and Meta first teamed up in 2017.
AI-Drizzy: UMG execs say the refreshed deal expands moneymaking opportunities and addresses issues with artist royalties. UMG’s also working with Meta to curb unauthorized AI-generated content (remember AI Drake?).
Morgan Wallen song to pair… with your Nashville bachelorette post. Social media has become a top destination for music discovery as platforms roll out new ways to share tunes. Last year TikTok began letting users save tracks directly to Spotify and Amazon Music. In May, Meta launched an “Add Yours” music sticker, letting users share their fave songs. But while social-media streams help tunes go viral, they’ve led to conflict with labels over royalties. In May, UMG agreed to a new deal with TikTok, bringing its massive song catalog back to the For You Page after a three-month blackout (UMG wanted higher royalty payouts and AI protections).
Labels need social feeds to succeed… A study found that half of those between 18 and 24 use social media to discover music, and record labels are tailoring tunes for TikTok. Last month UMG stock plunged after the company reported that its Q2 music-streaming revenue disappointed (partly because of the TikTok blackout). Rival Warner Music Group said it would take a $10M-per-quarter revenue hit after Meta removed its premium music video catalog.