YouTube and Universal Music Group have jointly confirmed that they have reached a ‘new, global, multi-year agreement’.
The licensing deal comes seven months after the Google/Alphabet-owned video giant struck a worldwide agreement with Warner Music Group.
Susan Wojcicki, CEO of YouTube, said: “We’re thrilled to strengthen our partnership with Universal Music Group. This agreement means we can drive more value to the industry, break and support more artists and deliver an incredible music experience to fans around the world.”
Sir Lucian Grainge, Chairman and CEO of Universal Music Group, added: “This important step forward provides our recording artists and songwriters improved content flexibility and growing compensation from YouTube’s ad-supported and paid-subscription tiers, while also furthering YouTube’s commitment to manage music rights on its platform.
“I look forward to collaborating with Susan and her team at YouTube on the important work ahead to advance artists’ interests and sustain the music industry’s recent growth.”
The Universal deal has been agreed 15 months after Lyor Cohen joined YouTube as its global Head of Music.
YouTube is expected to launch a Spotify-like streaming service in the first quarter of next year, currently codenamed ‘Remix’.
You would expect that UMG’s deal includes licensing provisions for that new service.Music Business Worldwide