[SMK] Social Media Knowledge


Facebook And Warner partner for Video and Messaging deal

Facebook has announced it's continuing a push into the music business, leveraging a new partnership with the Warner Music Group.

Warner joins the social network

In the wake of licensing a new deal through indy label ICE, Facebook is continuing its musical growth in signing a major label previous unengaged through social media.

The new deal will cover all of Warner Music’s recorded and published music catalogs and be incorporated into “social experiences” via Facebook, Instagram, Messenger, and Oculus.

The current list is impressive, with names like Jay-Z, The Eagles, and Ed Sheeran, to name a few. Experts believe this is only the first step in a massive shift in how we access music.

The trickery with royalties

The first step in expansion is contingent on sorting out royalties regarding music already found across Facebook. With no terms set just yet, it is rumoured that retroactive payments could be in the hundreds of millions.

Amongst Sony and Universal, Warner was the last big holdout to join the social trend of distribution. Warner Music will now be able to collect royalties from posts, videos, and messages.

The game changing dynamic of Warner going social only covers organic content from consumer users, with advertisers being the clear goal. As marketing trends catch up, ad music may be getting a whole lot more familiar.   

What are your thoughts on the new partnership? Do you think it benefits the consumer? Let us know in the comments below.

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