This is the first time that Facebook has entered into a copyright agreement with major record labels. After signing this agreement, Facebook no longer needs to require users to remove videos that belong to Universal Music from social media platforms. Neither party has disclosed the specific terms of this agreement.
In an effort to retain users and advertisers, Facebook, the world's largest social media company, has decided to march into video services and this copyright agreement with Universal Music is part of the company's focus on video.
Earlier this year, Facebook released a video service called Watch, which provides video content from Buzzfeed, Discovery Communication, and Major League Baseball.
According to Bloomberg, in addition to Facebook, YouTube also signed long-term copyright agreements with Universal Music and Sony Music.
Pivotal Research analyst Brian Wiese (Brian Wieser) said that music video is the most popular content on the Facebook platform. He believes that signing the copyright agreement with universal music will enable Facebook to compete with Alphabet's YouTube better.
Universal Music also disclosed that the two sides signed the copyright agreement in the future can be extended to Facebook Messenger.