Facebook steps into YouTube with Universal Music Deal

Facebook signed a multiyear licensing deal that lets the social network carry songs and artists from the world’s biggest record label, Universal Music Group, across its platforms.
 
Under the accord, Facebook users will be able to upload Universal’s songs and share music through Facebook, Instagram and Oculus virtual-reality technology, the firms said Thursday in a statement. Financial terms weren’t disclosed. The deal sets Facebook up as a more direct competitor to Google’s YouTube, the most popular destination online for listening to music. Both technology giants are battling for a bigger share of people’s time, and music rights could help Facebook give users new ways to engage with its services.
 
Striking deals with Facebook also gives record labels a way to put pressure on YouTube, which has become a powerful force in the music industry as a marketing tool and a way to introduce new artists. Google’s video site signed its own new long-term agreement with Universal Music, owned by Vivendi SA, and with Sony Music Entertainment this month, promising stronger policing of user uploads of copyrighted songs and paving the way for a new paid service after two years of tumultuous negotiations.