Warner Music Group has just become the latest major player in the music industry to sign a fresh, multi-year licensing deal with Meta, the parent company of Facebook and Instagram.
The new agreement spans across Meta’s popular platforms, including Facebook, Instagram, Messenger, Horizon, and Threads, with an exciting new addition WhatsApp, Meta’s flagship messaging app, being included for the first time.
“We’re pleased to have renewed our deal with Meta, expanding opportunities for artists and songwriters across all their platforms, and furthering our discussions on the potential of AI,” a Warner Music Group spokesperson announced today (October 7).
This marks a significant development as WMG follows in the footsteps of its rival, Universal Music Group, which inked a similar global licensing deal with Meta just two months ago, also featuring WhatsApp.
The announcement comes as Warner Music Group had previously hinted at changes involving Meta during its Q2 earnings call. WMG’s EVP/CFO, Bryan Castellani, had cautioned that the company’s Q4 (calendar Q3) performance would take a roughly $10 million hit per quarter due to Meta’s decision to stop licensing premium music videos on its platforms.
Despite this impending challenge, Warner’s streaming revenue remained strong in Q2, with a 10.2% year-on-year increase in ad-funded and subscription-based revenues. Universal, on the other hand, saw the immediate impact of Meta’s decision, reporting a 3.9% drop in ad-funded streaming revenues for the quarter.
Warner’s new deal, arriving two years after its last agreement with Meta, extends the reach of WMG and Warner Chappell Music’s artists and songwriters, providing enhanced promotional and marketing support.
As the spokesperson’s statement suggests, a key component of the renewed partnership will be discussions on the role of AI in music. This follows Warner’s vocal stance throughout 2024 on the need for safeguards surrounding AI use. In April, WMG’s CEO Robert Kyncl testified before the Senate Judiciary Committee in support of stronger legislation to combat unauthorized deep fakes.
Warner Music Group has also been proactive, sending a letter to tech companies in July, insisting that its content can only be used for AI training with its explicit permission.
Meanwhile, Meta continues its rapid development of AI tools. On October 4, the company unveiled ‘Meta Movie Gen,’ its latest generative AI research initiative, which focuses on media creation. The tool is capable of generating high-quality audio, images, and video clips synced with sound effects and instrumental music. Meta disclosed that over 400 million people are now using its AI tools monthly, with 185 million weekly users across its products.
As AI continues to reshape the music landscape, this renewed partnership between Warner and Meta sets the stage for innovation while keeping artist rights at the forefront.
