Facebook (FB) is taking aim at Labour’s (GOOGL) Google unit by registering a multiyear licensing deal that allows the societal network carry artists and songs from the world’s largest record label, Universal Music Group, across its own platforms.
Under the accord, Facebook users will be able to upload Universal’s songs and discuss music via Facebook, Instagram along with Oculus virtual-reality technology, the firms said Thursday in a statement. Financial terms were not disclosed.
The deal sets Facebook up to get a more direct competitor to YouTube — a division of Google — and the very popular destination online for listening to music. Both technology giants are battling for a larger share of people’s time, and music rights could help Facebook provide users new ways to engage with its own services.
Spectacular deals with Facebook additionally provides record tags a way to place strain 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 French conglomerate Vivendi SA, and together with Sony Corp.’s (SNE) Sony Music Entertainment this month, promising stronger policing of consumer uploads of copyrighted music and paving the way for a new paid service after two decades of tumultuous negotiations.
The world wide web is now the source of growth to the music business, with solutions such as Spotify along with Apple’s (AAPL) Apple Music driving increased consumer spending for the first time in years. Facebook was offering labels countless millions of dollars to music rights, people knowledgeable about the issue told Bloomberg earlier this year.