Facebook is reportedly in the early steps of building its own streaming music service, which would compete with services like Apple Music and Spotify. According to industry publication Music Ally, which broke the news, the platform would center around working with partners to monetize music videos.
The company’s initial goal is to expand its new ad revenue share program for content creators–which was announced last week–to labels as well, in a move to host music videos directly on the social network. Music Ally reports that Facebook hopes to follow that up with a play for the streaming market:
It’s Facebook’s plans to build on this with a Spotify-style audio streaming service that are making waves within the music industry, even though the launch date and specifics of the business model and payout formula have yet to be nailed down. Sources have told Music Ally that an audio service is very much on Facebook’s roadmap, but that both the social network and rightsholders realise that it has to get the monetised-video service right first.
One thing is for sure: Facebook is looking to enter a market that’s already saturated with competitors, many of whom are offering nearly identical services at similar price points.
Last week, The Verge reported that Facebook had initiated talks with record labels, including Sony Music Entertainment, Universal Music Group, and Warner Music Group–conversations that likely addressed the company’s plan to monetize music videos.
Music Ally writes that Facebook is partnering with a third party for the music video initiative, with a rollout expected within the next few months.
[via Music Ally]
Update: A spokesperson for Facebook told Fast Company the following: “We have no plans to go into music streaming.”