Meta and UMG Join Forces
A new agreement between Meta Platforms Inc. and Universal Music Group (UMG) highlights the crucial role of social media in boosting the income of renowned musicians like Taylor Swift, Coldplay, and Bob Dylan.
This multi-year deal, announced on Monday, expands Meta's rights to utilize UMG artists across its platforms, including user-generated content on Facebook and Instagram, as well as software on its virtual reality platform Meta Quest. Notably, this agreement marks the first time WhatsApp is included, allowing Meta to license UMG content on the messaging platform.
This collaboration builds upon a 2017 agreement that made UMG the first major music company to license its content to Meta, then known as Facebook. This opened the door for user-generated content to incorporate artist tracks as background music, significantly impacting the music industry.
Following UMG's lead, Warner Music Group and Sony Music Group signed similar deals in 2018, generating new revenue streams for artists and resolving years of legal disputes over copyright infringement.
However, Meta's decision last year to shut down its Premium Music Videos platform has impacted record labels financially. Warner Music Group alone is estimated to lose at least $10 million per quarter due to this decision.
The Meta-UMG agreement also comes amidst a dispute between UMG and TikTok, a major competitor to Meta in several areas. Both companies have emphasized their commitment to tackling "unauthorized AI-generated content" that could harm artists and songwriters.
In March, UMG removed its music from TikTok due to concerns over the platform's use of music copyrights in training AI models. This dispute was resolved in May with a new agreement ensuring that AI development within the music industry protects artists and songwriters.
Furthermore, a group of prominent artists, including Billie Eilish and Stevie Wonder, have signed an open letter demanding that AI developers cease using "predatory" AI technology that could potentially replace human artistry.
In June, TikTok established a dedicated team to acquire music rights, potentially enabling the platform to train AI models on its own music and offer users AI-generated music based on their preferences, potentially bypassing record labels altogether.