Universal Music Group (UMG), the largest music label globally, announced on Monday an enhanced agreement with Meta Platforms, the parent company of Facebook, aimed at creating new opportunities for its artists and songwriters across Meta's social media platforms.
"UMG was the first major music entity to secure a licensing deal with Facebook in 2017, and this new agreement will further broaden the scope for music within the Meta ecosystem," stated the company, which represents renowned artists such as Taylor Swift and Billie Eilish.
This agreement encompasses all of Meta's primary platforms, including Facebook, Instagram, Messenger, and, for the first time, WhatsApp.
Additionally, the renewed agreement addresses the compensation concerns for artists and songwriters, according to UMG.
In late July, the music label announced the termination of its partnership with Meta regarding the streaming of premium music videos, citing that this type of content was less favored by Facebook's user base compared to other music offerings.
The $54 billion conglomerate, which controls over a third of the market, had previously established a new licensing agreement with TikTok in May, reinstating its songs and artists on the social media platform.
Last month, UMG's stock experienced a decline of more than 23% in a single day, following disappointing streaming and subscription revenue figures for the second quarter, which fell short of investor expectations.