Facebook and Warner Music ink recorded and published music deal for videos and messages

Facebook and Warner Music ink recorded and published music deal for videos and messages
From TechCrunch - March 9, 2018

Just weeks after signing a large licensing deal with leading indy label representative ICE, Facebook has continued its march into the world of music with the news that it has now added Warner Music Group into the mix, the last major label that was not yet working with the social network.

Facebook has signed a wide-ranging licensing deal that covers all of Warner Musics recorded and published music catalogs. Music from these can now be used in social experiences on Facebook, Instagram, Messenger and Occulus. (WhatsApp for now is not included.)

The list of artists in the Warner stable is massive: it includes iconic names like the Eagles and early Madonna (pre 2010) through to Ed Sheeran, Nina Simone and Jay-Z.

Facebook has been working on a more comprehensive music licensing policy for months, some believe as it gears up to take a bigger step into music services itself.

But before anything like that can even be considered, though, it has had to sort out royalties around music that appears on Facebook already. A Warner spokesperson confirmed to me that its not disclosing any terms. But reports have estimated that the prices of these deals are in the hundreds of millions of dollars to cover Facebooks 2.1 billion registered users.

Warner was the last big hold-out among the worlds big three biggest labels, alongside Sony and Universal Music, which had yet to sign on to working with Facebook, something it highlighted when commenting on todays deal.

The team at Facebook is creating a truly innovative product and is showing real commitment to its participation in the growth of the music business, said Eric Mackay, EVP, Global Digital Strategy, Warner/Chappell, in a statement. Weve taken our time to arrive at the best possible deal, one that recognises the value that music creates on social networks, while empowering our songwriters to reach audiences around the world, in a way that will spark creativity and conversation among their fans. Our incredible catalogue of songs will be represented throughout Facebooks platforms and were excited to work together to create new opportunities for both our songwriters and Facebooks users.

In addition to Warner/Chappell, labels associated with WMG includeAsylum, Atlantic, Big Beat, Canvasback, East West, Elektra, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Warner Bros., Warner Classics and Warner Music Nashville.

This is a very significant deal: it will mean that Warner Music will now be able to collect royalties on tracks that are used in videos and messages; and those posting content on Facebook and its network of social sites will be doing so in the legal clear.

For now, this covers just organic content from consumer users, but it sounds like the two will also be exploring how to bring this into advertising and other paid posts as well.


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