Sources through Music Ally have speculated that Facebook is in the early planning stages of launching their own audio music-streaming service. Plans include ways to monetize on features like on-demand audio services through music videos and other related services. In the initial phases, they will launch a video playing service that’s expected to be similar to YouTube. It will include a Content ID to ensure that rights-holders can remove their videos or get the associated ad revenue from them. A music video roll out may be scheduled for a few months from now, according to sources. The Content ID will be through a third-party service for the time being.
Per-Stream rates: Facebook may mirror YouTube in issuing a per-stream rate when it’s launched, but rights-holders may find this rate can improve once Facebook does things like introduce exclusive videos and advertising rates can climb from there. Some have even suggested that with internal testing, Facebook’s music video service is more advanced than YouTube’s.
Spotify style: With the audio service well underway, Facebook is aiming for a style comparable to Spotify’s streaming service features, and this isn’t sitting well with many in the music industry. Their concerns are more around protecting rights-holders through a reliable content ID system and that’s to be expected.
Another growing concern is how will Facebook obtain their streaming music content? Are they considering purchasing Spotify or would they look at a smaller ticket price achieved from buying Rdio? Questions are also circulating as to whether or not Facebook should build their own streaming music platform instead of buying one and there are benefits to both options that can help ensure Facebook monetizes on this new feature.
While no one at Facebook is talking or commenting, a lot are whispering that this might be a really big deal and considering how big the What’s App deal was at $19 billion – and no one was talking then either, anything is possible with Facebook. Because Facebook is now poised for more planning, R&D and innovative technology, this new streaming music feature is sure to be something to look forward to – especially if they are able to secure the protection rights-holders are asking for in the content ID department.
Reference:
Forde, Eamonn, Musically: Exclusive: Facebook in Early Talks to Launch Audio Music-Streaming Service, July 8, 2015, http://musically.com/2015/07/08/facebook-early-talks-audio-music-streaming-service/
