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Universal Music Signs Meta Deal Allowing Its Music to Appear on WhatsApp

Author: Dominic Chopping Source: WSJ:

August 12, 2024 at 09:55

Universal Music Group artists include Taylor Swift, who performed in Amsterdam in July. Photo: Aldara Zarraoa/Getty Images

Universal Music Group artists will see their songs made available on WhatsApp for the first time, after the record label struck a new licensing deal with Meta Platforms.

Universal Music Group UMG -0.72%decrease; red down pointing triangle artists will see their songs made available on WhatsApp for the first time, after the record label struck a new licensing deal with Meta Platforms META -0.93%decrease; red down pointing triangle.

The world’s largest music company has signed an expanded multiyear global agreement that allows music from its artists and songwriters to be used and shared across Meta’s global network of platforms, including Facebook, Instagram, Messenger, Horizon, Threads and WhatsApp. The group’s artists include Taylor Swift, Adele and Elton John.

The two companies initially penned a deal in 2017 that saw Universal Music license its recorded music and music publishing catalogs across Facebook’s platforms, which mainly covered songs used in the background of videos and “other social experiences” on Facebook, Messenger, Instagram and Oculus.

That deal paved the way for a new revenue stream for the industry, as user-generated videos hadn’t before generated income for artists and relied on burdensome legal proceedings to have unlicensed content removed.

With Monday’s new agreement, the companies said monetization opportunities for Universal Music artists and songwriters have been expanded with short-form video and licensed music for WhatsApp.

“The new agreement reflects the two companies’ shared commitment to protecting human creators and artistry, including ensuring that artists and songwriters are compensated fairly,” the companies said in a joint statement.

They will also continue to work together to address the growing threat from unlicensed content created using artificial intelligence that could affect artists and songwriters, they said.

The deal follows an agreement earlier this year with TikTok that saw Universal Music Group artists and their songs return to the popular video-sharing app after months of disagreements over pay.

Universal threatened legal action over unlicensed songs on TikTok, as the monthslong public spat dragged on amid congressional calls to force a sale or U.S. ban of the platform.

A surprise move by Taylor Swift to put her music back on TikTok promoted a new dialogue between the two companies and an agreement being reached with increased artist royalties.

The clash highlighted the increasing importance of social-media platforms for artist revenue.

Meta has similar licensing agreements with publishers such as Warner Music Group and independent music licensing agency Merlin.

Write to Dominic Chopping at dominic.chopping@wsj.com