After rumors of ad-supported videos that were linked to record labels, Facebook is suspected of making some big moves in the digital music world. Music Ally reported this week that Facebook may be launching an audio music-streaming service to compete with Spotify, Apple Music, and more. Their sources are off the record – but many other sources have confirmed their activity.
Variety was the first to detail some of the news (read the article here), suggesting ad sharing that gives back 55% of the revenue to their shareholders like Fox Sports, the NBA, and Funny or Die. This would place videos in-between ads. Something could happen in the next few months, according to Music Ally. They plan on beginning monetization soon.
One source says, “On Facebook’s move into monetised video, all of us could see it coming for months. We have all been really utilising it in internal testing. It is way, way ahead of YouTube.”
Facebook may be looking to purchase a streaming service as well. In the past, they have made huge acquisitions to pick up Instagram (1 billion) and WhatsApp, for example. They're looking to match YouTube's “per-stream” rates to rightsholders when they launch, according to sources.
Details should be coming soon so stay posted. There may be a service already targeted.
Source: Music Ally