YouTube's new deals could bolster its music streaming service

Future Business

Of course, Facebook users could previously create videos with copyrighted music and share them to the network. 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.

You'll soon be able to legally add some of the hippest background music to those dog and cat videos you post on Facebook.

The music industry has long battled with illegal online music sharing, with artists losing out on royalties as their work is shared across social media.

The record label's portfolio of music, which includes artists including Taylor Swift and Jay-Z, will be used for video and "other social experiences" across Facebook, Instagram and Oculus, the tech company's VR arm. While Universal was first, according to Variety, Warner Music may be next to sign on.

"We look forward to Facebook becoming a significant contributor to a healthy ecosystem for music that will benefit artists, fans and all those who invest in bringing great music to the world", he said in the statement.

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Facebook's testing didn't show a change in click-through rates between the Disputed Flag and Related Article methods, but people were less likely to share a false story with the article context.

Google's YouTube recently signed a new agreement with all three major record labels ahead of the rollout of a new music streaming service in 2018. Universal also declined to comment.

The deal marks an important milestone in the social company's ambitions to compete with Google's YouTube, now the most popular destination online for listening to music.

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.

Facebook has increasingly gone head-to-head with YouTube on its signature turf of videos.

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