Facebook signs licensing with Warner, now has all majors, can a streaming service be far behind?

Facebook Inc. has signed a licensing agreement with Warner Music, marking a deal with the third and final major record company to bring more licensed music to social media.

It follows similar take-ups with Universal Music Group and Sony/ATV Publishing along with Kobalt Music Publishing, Global Music Rights, and HFA/Rumblefish.

Last month, it signed with pan-European llicensing group and copyright database ICE Services covering 160 territories, 290,000 rightsholder and 31 million works.

The deal covers Warner’s recorded and publishing catalogues, which allows Facebook users to post videos and messages using Warner tracks without having them pulled down.

The two companies will also continue to work together to develop new products that will allow users to personalize their music experiences across Facebook, Messenger, Instagram and Oculus.

“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,” Eric Mackay, executive vice president of global digital strategy at Warner/Chappell, said in a statement.

“We’ve taken our time to arrive at the best possible deal, one that recognizes 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 Facebook’s platforms and we’re excited to work together to create new opportunities for both our songwriters and Facebook’s users.”

TMN has in the past hinted that Facebook executives have considered launching an on-demand streaming service to compete with the likes of Spotify or Apple Music.

There are, as yet, no definite plans for one. But such a licensing deal opens the door.

When it comes to streaming, Facebook has the advantage.

It had 2.13 billion global users at the end of 2017, a 14% jump from the year before.

1.4 billion log on to Facebook every day.

In comparison Spotify has 159 million monthly users and 70 million subscribers, while Apple Music at 30 million.

Warner Music Group‘s chief digital officer Ole Obermann sees a follow through of the deal as a greater take-up of music streaming and more revenue for artists and songwriiters.

“Fan-created video is one of the most personal, social and often viral ways that music is enjoyed, but its commercial potential is largely untapped,” Obermann said.

“This collaboration will lead to new possibilities for our artists, while enhancing the user experience across Facebook, Instagram and Oculus, and enabling people to communicate and express themselves using the music they love.”

Tamara Hrivnak, Facebook’s head of music business development and partnerships: “When Facebook and music come together, we have the power to bring people closer together.

“Music brings to life the happy, the sad, the throwback and the funny in all the moments and messages we share with friends.”