FILE PHOTO: The logo of Universal Music Group (UMG) is seen at a building in Zurich, Switzerland July 20, 2021. REUTERS/Arnd Wiegmann/File Photo
(Reuters) - Universal Music Group (UMG), the world's biggest music label, announced on Monday an expanded agreement with Facebook-parent Meta Platforms to create new opportunities for its artists and songwriters across Meta's social platforms.
"UMG was the first major music company to license Facebook back in 2017 and this new agreement will further expand the possibilities for music within the meta ecosystem," said the company that represents artists such as Taylor Swift and Billie Eilish.
The agreement concerns all of Meta's major platforms, including Facebook, Instagram, Messenger and, for the first time, WhatsApp.
The renewed agreement also addresses the issue of compensation for artists and songwriters, UMG said.
In late July, the music label said it had ended a partnership with Meta for the streaming of premium music videos. It said this type of product was less popular with Facebook's user base than other music products.
The $54 billion group behind more than a third of the market had reached a new licensing agreement with TikTok in May, restoring its songs and artists to the social media platform.
Last month, UMG's shares shed more than 23% in a single day after weaker than expected streaming and subscription revenues for the second quarter disappointed investors.
(Reporting by Alban Kacher in Gdansk; editing by Milla Nissi)
