Facebook signs first-ever music deal with a record label

Facebook is getting more musical. In what's been quite the long-time coming for the social network, Facebook has signed its first-ever deal for music rights with a record label.

Universal Music Group and Facebook agreed on a multi-year deal that lets Facebook host content with the label's licensed music across its network, including the main app, Instagram, and Oculus. That could include Facebook and Instagram videos made by users with the music in the background.

Bloomberg was the first to report the news. The companies announced the news in a joint press release on Thursday.

Of course, Facebook users could previously create videos with copyrighted music and share them to the network. Facebook has a longstanding belief of letting users post freely. But over the past few years, it's introduced systems that identified and removed copyrighted music. Users also could report unlicensed content.

With those tools in place and this new deal, making Facebook videos with Universal Music Group's songs is now legal, and Facebook is now another step closer in its quest to be a destination for high-end video. Facebook has been working to lure YouTube stars and other creators to its network.

Earlier this month, Facebook released its own collections of songs and song effects for users to add to their own videos. This deal brings more options for creators and for fans and could potentially allow Facebook to create its own music streaming service, if it so chose.

“There is a magnetic relationship between music and community building. We are excited to bring that to life on Facebook, Instagram, Oculus and Messenger in partnership with UMG. Music lovers, artists and writers will all be right at home as we open up creativity, connection and innovation through music and video," Tamara Hrivnak, Facebook's head of music business development and partnerships, said in a statement.

"This partnership is an important first step demonstrating that innovation and fair compensation for music creators are mutually reinforcing – they thrive together. 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, Michael Nash, Universal Music Group's executive vice president of digital strategy, said in a statement.

The business of music streaming is quite competitive, however. Google's YouTube reportedly signed a deal with Universal Music Group and Sony and is building another service, according to Bloomberg. Then there's Spotify, Apple Music, SoundCloud, and good ole fashioned MP3 players.