Update: In a statement to Billboard, Facebook says it has “no plans to go into music streaming.” Other sources say that Facebook hasn’t had discussions with major labels, and that any music integration wouldn’t resemble the monthly services offered by Spotify and the like.
Will Facebook be the next entity to get into the streaming business?
Music Ally reports that Facebook will be following its move into the native video space with the launch of a music streaming service that would look to compete with Spotify, Apple Music and others.
Speaking with industry sources, Music Ally finds that Facebook plans to pay royalties for music videos and will launch a system like YouTube’s Content ID that will connect rightsholders to ad revenue, matching YouTube’s rates.
“It’s a mass land grab. Facebook going into the video space was always going to be an enormous, ambitious land grab and no doubt something they’ve been planning for some time as the potential income from ad revenue will be incredible,” says one source.
Reportedly, Facebook will then move into “Spotify-style” audio streaming, which Music Ally suggests they could buy outright, following acquisitions of WhatsApp, Oculus VR and Instagram, but will likely build it themselves.