After making a dent into YouTube’s video entertainment business (look at this for numbers), it seems Facebook is now looking to go deeper into the entertainment market, now perhaps with a music service.
If a recent report from The Verge is to be believed, Facebook is in talks with music labels such as Sony Music Entertainment, Universal Music Group, and Warner Music Group about “getting into music”. However, those talks are still in early stage with Facebook apparently unable to decide what exactly it wants to do with music. A possible integration of it current video service with music may be on cards.
This news comes amidst the excitement and buzz around Apple Music, which launched this week.
According to a study, people listen to an average of four hours of music a day and an average US citizen spends nearly 40 minutes on Facebook daily. If Facebook does manage to come up with a music service onto its platform, it would result into more engagement of users on its site, and more problems for youTube and other content streaming services.
With already 1.44 billion monthly active users and 798 million mobile users every day, Facebook can easily carve out a niche in not just music streaming, but perhaps every other entertainment business. It can thus potentially match the reach of Apple Music, which has the advantage of having 800 million potential users.
However there can be another side to this story. A story published by The Information last month said that Facebook was in talks with at least one major music label for allowing its music to be used in videos on the site.
Currently many videos uploaded on Facebook by users get flagged and deleted due to copyright infringement issues on the music used in those videos. In contrast, YouTube videos can contain snippets of copyrighted songs (within reasonable limits), because the Google-owned video giant has come to an agreement with the labels to share advertising revenue with videos that contain their music.
Thus completely setting apart music streaming, Facebook may just be in talks with the music labels for a similar kind of agreement to further expand its latest video feature and avoid a copyright lawsuit like Youtube (which once got sued for $1 billion by rights-holder Viacom and was consequently involved in a legal battle spanning over three years) which finally ended last year.