Last week a rumour started spreading that Facebook was about to enter the market of music streaming services, merely a couple of days after Apple Music went live. Facebook denied the claims however, and made a statement saying it had no desire to begin a streaming service of its own.
One insider has now told Billboard that Facebook has something in the works that could be seen as an attempt to enter Google territory. Billboard’s source disclosed information of the social media company having talks with record labels to discuss possibilities for them to natively post official music videos in Facebook users’ news feed. A test run is supposed to be planned through the end of 2015 with select music videos chosen by the labels in question – an attempt, so says Billboard, “trying to siphon ad revenue away from Google by offering content creators its own native option.”
Facebook is said to be looking into closing licensing deals with the labels in question. Variety has reported that the videos’ ad revenue split will be the same as at YouTube (45% to Facebook, 55% to the rights holder). There is no word on how Vevo, venture between Universal Music Group and Sony Music tasked with centralizing music videos from both record colossuses, would fit into this picture. They have yet to comment on the reports of Facebook’s endeavour into new territory. More news on this story as it develops.
Source: Billboard
