Universal's music arrives on WhatsApp thanks to new Meta deal
What's the story
Universal Music Group (UMG), the world's leading music label, has broadened its licensing agreement with Meta.
For the first time, this encompasses WhatsApp along with Facebook, Instagram, and Messenger. The updated deal also addresses compensation for artists and songwriters.
"UMG was the first major music company to license Facebook back in 2017 and this new agreement will further expand the possibilities for music within the meta ecosystem," stated UMG.
Past collaboration
UMG's previous partnership with Meta
In July, UMG terminated a partnership with Meta over a disagreement related to the streaming of premium music videos.
The music label stated that this type of product was less popular among Facebook's user base, compared to other music products.
Despite this setback, the newly expanded licensing agreement signifies a continued collaboration between the two companies.
With the new agreement, the firms said monetization opportunities for artists and songwriters have been expanded via short-form video and licensed music for WhatsApp.
Market outlook
UMG's market performance
UMG, a $54 billion group controlling over a third of the market, had previously inked a new licensing deal with TikTok in May.
This agreement restored its songs and artists to the social media platform.
However, last month saw a significant drop in UMG's shares by over 23% in a single day, due to weaker than expected streaming and subscription revenues for the second quarter that disappointed investors.