Universal Music Group (UMGNF) announced on Monday 12 August 2024 that it has extended its existing licensing agreement with Meta Platforms (META) to broaden the exposure of its clients across Meta’s social media channels.
Universal Music Extends Its Licensing Agreement With Meta
In its press release, the world’s leading music label said that this agreement will create opportunities for its artists and songwriters to feature their music on Facebook, Instagram, Messenger, Horizon, Threads and WhatsApp – all platforms of Meta. According to a Reuters report, Universal Music represents industry giants such as Billie Eilish and Taylor Swift.
This globally expanded, multi-year agreement aims to create and evolve “commercial opportunities” while addressing issues such as the generation of unauthorised artificial intelligence (AI) content. Tech giants, such as Meta, are continually vying for an edge in the AI sphere. Others in this arena include Tesla, Inc. (TSLA), Alphabet Inc. (GOOGL), Apple Inc. (AAPL) and Microsoft Corporation (MSFT).
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
UMG’s chief digital officer and executive vice president, Michael Nash, indicated that since its “landmark” agreement with Meta in 2017, the tech titan has “consistently demonstrated its commitment to artists and songwriters”. He added:
We are delighted that Meta shares our artist-centric vision for respecting human creativity and compensating artists and songwriters fairly.
This agreement reportedly also covers compensation for artists and songwriters. Reuters reported that UMG, which is valued at roughly $54bn, also reached a new licensing agreement with ByteDance, the TikTok owner, in May 2024.
UMG shares dropped by more than 23% on 25 July 2024 after its Q2 streaming and subscription revenues missed the cut.
