Sony/ATV Music Publishing signed an agreement with Facebook Inc., seeking a share of the social media industry’s burgeoning revenue by letting users post songs from artists like Ed Sheeran and Jazzy B.
The record industry is in the third year of a recovery thanks to paid services Spotify and Apple Music, which have persuaded more than 100 million people to pay a monthly fee for access to a library of millions of songs. Yet most people still listen to music for free on advertising-supported radio, on-demand services or social networks.
Music executives are hoping to increase sales from free outlets, which contribute a minority of the sales despite their large audiences. Facebook was offering the music industry hundreds of millions of dollars, people familiar with the matter said last September.
Facebook doesn’t yet have the rights to host professional music like YouTube. The social media service signed a similar deal with Vivendi SA’s Universal Music Group last month.
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