The companies explained that the partnership will give Facebook and Instagram users the ability to upload and share videos that contain licensed music.
On Oculus, meanwhile, it gets potentially even more interesting. Eventually, the functionality of the agreement will expand across other social features, including Messenger, with users being able to access a vast library of music.
"Together, Facebook and UMG are creating a dynamic new model for collaboration between music companies and social platforms to advance the interests of recording artists and songwriters while enhancing the social experience of music for their fans", comments Michael Nash, Executive Vice President of Digital Strategy, Universal Music Group. Users can easily opt to watch music videos on YouTube for free, potentially making it more hard to convert some of its users into paying Remix subscribers. Really, the sky is the limit for how a music partnership with the social media giant could look.
A successful music streaming service would strengthen YouTube's relationships with music rights holders. A joint statement did not specify the terms but hinted that the agreement would address compensation by YouTube, a constant source of irritation within the music industry. That could include Facebook and Instagram videos made by users with the music in the background.
Universal has certainly been busy on that front: the Facebook announcement comes just days after the company revealed a new licensing deal with YouTube - also a global, multi-year agreement - which is seen as a step towards that platform's new "Remix" streaming service in 2018. Spotify and Apple Music also offer streaming music services.
Both parties heralded the global deal as "unprecedented", where UMG's recorded music and publishing catalogues for video are approved for use across Facebook, Instagram and Oculus.
Earlier this month, Facebook released its own collections of songs and song effects.