If you were to use background music that you don’t own or have obtained a license for, that’s already enough to have it pulled from Facebook. This is why the company has been pursuing deals with music labels so that videos aren’t being pulled from the platform and to save all the legal troubles.
Variety reports that Facebook has signed a licensing deal with Warner Music Group that will allow users to create, share and upload videos to Facebook that contains music from the label. Previously, Facebook had signed deals with Universal and Sony, but Warner wasn’t in the mix yet. Now that Facebook has signed the deal with Warner, this wraps up the “Big Three” music labels.
At this time, we aren’t sure of what the terms of the deal were, but it’s safe to say that all three licensing deals (Sony, Warner, and Universal) were probably similar. Ole Obermann, the Chief Digital Officer of Warner Music Group said to Variety, “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.” This is a win for both Facebook and the three music labels because it opens a new revenue stream and other possibilities for both sides.