Facebook reveals its next frontier: music videos
A week after the triumphant launch of Apple Music, an industry inside source has revealed that Facebook is looking to pull music video views — and subsequent ad revenue — away from Google and YouTube.
The social media behemoth is conducting a test through the end of the year where label-selected music videos will be shown in Facebook users’ news feeds. In order to start these music video trials as soon as possible, Facebook is closing licensing deals at a rapid-fire pace. Once the deals are set in place, Facebook can employ one of the most powerful tools at their disposal: data collection and analysis. VEVO, which centralizes Universal Music Group and Sony Music’s videos, did not immediately respond to request for comment as to what its involvement would be.
The ad revenue split is set to mirror YouTube’s model with forty-five percent of ad revenue going to Facebook, and fifty-five percent to rights holders. This isn’t the first instance where Facebook has tested out music video monetization. In 2013, Jay-Z premiered his video for “Holy Grail” on the social media platform.
Facebook reported last year that over one billion videos were viewed on the site every day. This number is sure to be a conservative estimate since video autoplaying was added as a newsfeed feature. YouTube, the competition that Facebook hopes to undercut, sees billions of views every day.