Facebook wants a slice of the music business too now
Facebook is making moves in order to get a slice of the music industry pie. Reportedly, Facebook is entering the business as an alternative licensing platform to YouTube.
The social media platform is attempting to enter the music industry by using video as a medium. The social media site has been focusing on video content a lot lately. They have been prioritizing the video features on their site. They plan to monetize this in the near future too.
This effort puts Facebook in the running in the streaming wars between YouTube, Apple Music, and Spotify. Mark Facebook has every shot of making this a success with a user base of two billion.
Because of their strong hold and two billion users they could also make a dent in traditional television advertising. According to Bloomberg, the TV ad industry is worth $70 billion a year and Facebook could potentially take a chunk of this business themselves.
It could become a true competitor to YouTube in video streaming. They have the potential to match YouTube’s $1 billion in ad revenue or even exceed it.
This could present a few problems for record labels; licensing rights to a second tech giant such as Facebook could cut into label profits. Also, the way that Facebook presents video content could complicate copyright matters.
According to Bloomberg…“For Facebook to obtain professional video — both music and otherwise — it may have to alleviate concerns about how clips will be presented. At the moment, most Facebook users see videos in their newsfeed, where a clip from a TV show may be followed by a baby photo and then a friend complaining about romantic frustrations. Facebook must also finish a system to police copyright-infringing material akin to Content ID, the system used by YouTube. Videos on the site already feature a lot of music for which artists don’t receive royalties — a major source of tension.”