Facebook To Launch Its Own Music Streaming Service

Posted: Jul 9 2015, 7:14am CDT | by , in Technology News


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Facebook to Launch its own Music Streaming Service
Credit: Getty Images
  • Facebook reportedly in talks to introduce music streaming service for its customers

Facebook is in fact eying audio streaming and would join the likes of Apple, Spotify and others.

It seems that Facebook has some digital music ambitions and to fulfill these ambitions it has been having early talks with labels linked with to its trial of ad-supported native videos. With reports that Facebook will be expanding the trial to music videos soon, the social network is also working to follow that with the launch of its own audio music-streaming service in order to compete with the likes of Spotify, Apple Music and many others who already renowned in this market.

Inside sources claim that Facebook is quite bold about its plans as it plans to monetize music videos which are a very important stepping stone towards the on-demand audio service which is basically the real motive.

In the first phase Facebook will be seen paying royalties to music rights holders for plays of their music videos on its new service along with launching a systeum like the YouTube’s Content ID to help those rights holders identify and then either take down or claim user uploaded videos. Apart from this the inside sources familiar with these developments stated that the talks for the music video side of things are at an advanced stage with a rollout expected to begin in the coming months.

This is so as the Content ID-style system is being licensed in from a third rather than built in-house along with the labels keen to be sure that the system is safe and reliable before they finalize any deals with Facebook.

It is being said that Facebook will match YouTube’s per-stream rates to rights holders at its launch. Even though the rights holders hope that there is some scope for those rates to improve once the service is up and running.

One source stated to Music Ally that Facebook going into this field was always going to be an enormous land grab and they have been planning on this since a very long time now as the income that will be generated from the ad revenue will be huge.

Moreover sources have explained that an audio service is very much on Facebook’s agenda but both the social network and the rights holders know that before that it has to get the monetized video service first at all costs.

Now the main question that has been going on people’s mind is that will Facebook build or buy its streaming service! Well with the company having paid $19 billion for the messaging app WhatsApp, another $2 billion for virtual reality startup Oculus VR and $1 billion for the photo-sharing app Instagram the company is pretty willing to splash out at multiple levels for companies to expand its offering.

When looking at the rivals in this market or you can say competition, Spotify’s current value is less than half the WhatsApp price while Rido is a fraction of that price. So picking up these won’t be a big problem for Facebook. However the sources believe that Facebook will build rather than buy.

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M. Affan covers the hottest news that captivate the web today.




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