Snap Inc., the parent company of Snapchat, and Universal Music Group (UMG) one of the world's biggest music corporations, have reportedly announced a multi-year deal to add Universal’s music catalog to Snap’s Sounds.
According to reports, this deal will enable users of Snapchat to clip their favorite songs from UMG's vast catalog.
This news comes on the heels of Snapchat’s October launch of the Sounds function, which allows users to add music to their Snaps. Snap claims that over 521 million clips have been made using Sounds since then, with over 31 billion views.
Snapchat's engagement in music is, obviously, a straight reaction to the popularity of music on TikTok. After a song called ‘Dreams’ by Fleetwood Mac became viral last year on TikTok, the 1977 album called ‘Rumours’ entered the Billboard charts again after decades.
On TikTok, dance trends frequently become viral, which can lead to an increase in sales for the singer whose song is being performed. In short, the music that is licensed with applications such as Snapchat and TikTok, has more chances of becoming popular, which also ultimately results in a free spotlight for the platform.
Artists from gen Z, such as Olivia Rodrigo, have already taken full advantage of such social media platforms to promote their new songs. According to Snap, her song 'Driver's License' has been used in more than 10 million videos. Rodrigo was also the first singer to utilize Snapchat's augmented reality lenses to publicize her chart-buster debut 'Sour', however, she did share AR effects on Instagram as well.
In February, TikTok also signed a contract with UMG. In addition to that, back in November it had announced a new license partnership with Sony. Meanwhile, the music partner portfolio of Snap contains labels such as Warner Music Group, Sony Music Publishing, and others.
These licensing deals are not exclusive; users can use the same song on TikTok, Snapchat, and Instagram as well. It is a continual fight of reactive one-upmanship when it comes to agreements like these. If TikTok signs a contract with UMG, Snapchat will have to do the same to stay competitive, which is exactly what the industry has witnessed with the Snap-UMG deal.