Over the past few years, Facebook has been more aggressive with removing videos with copy-written music, but this could allow the rules to be slightly more lax while having UMG taking a cut of ad revenue.
The two parties will also partake in developing 'experimental new music-based products to these Facebook platforms, with the goal of catalysing innovation to develop the next generation of music products that best engage social consumers'.
The agreement aims to foster increased engagement between artists and fans online by first allowing users to upload videos containing licensed music. Facebook says that in the pipeline there are plans to open up "a vast library of music" across multiple social features, though isn't saying exactly what that will entail.
Tamara Hrivnak, Head of Facebook's Music Business Development and Partnerships, said of the deal: "There is a magnetic relationship between music and community building". They'll also be able to personalize their music experiences while sharing videos.
"Together, Facebook and UMG are creating a dynamic new model for collaboration between music companies and social platforms to advance the interests of recording artists and songwriters while enhancing the social experience of music for their fans", Nash said.
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During his time in Congress, Garrett once called the agency "a bank that embodies the corruption of the free enterprise system". Garrett's nomination had many on the committee wary of how well he'd actually serve as head of the Export-Import Bank.
The partnership comes days after Bloomberg reported that YouTube had signed a long-term agreement with Universal Music Group and Sony Music Entertainment. The move will soon bring UMG's music catalog to Facebook, Instagram, and Oculus.
This year, UMG inked a similar deal with Spotify, and earlier this week, extended its licensing deal with YouTube to give UMG greater control over its music, as well as compensation for its artists.
And in August, the company launched Facebook Watch in the United States, a sub-section on the platform that like YouTube offers unique, quirky videos by homebody presenters unlikely to be cast by television executives.
With those tools in place and this new deal, Facebook is another step closer in its quest to be a destination for high-end video.