We never get bored of music videos so Facebook Inc (NASDAQ:FB) is trying to give us more while we’re on social media.
The online social networking service headquartered in Menlo Park, California, is thinking of joining the music business, but it doesn’t have its eyes set on Spotify or its rivals. It’s looking at another giant, YouTube. The New York Times reports that the company will avoid the popular streaming business and go for the music videos, an area that’s been dominated by YouTube for quite some time. The social networking company has taken its first steps in recent weeks and held licensing talks with major recording labels to bring music videos straight into users feeds.
Facebook is offering these labels revenue sharing deals that would give them more than YouTube and has also promised that they will do all they can to prevent unauthorized videos from appearing on the site, sources told the Times. Unauthorized videos are common on YouTube, most of them get taken down, but not before thousands of viewers get to see the content.
Talks and Previous Reports
The talks, which were first reported by technology business site The Information last month, are said to be in the first stages but clearly show that Facebook is looking to compete against the music video giant. The social media site currently has 1.4 billion monthly users and would be the right candidate to go up against the video-sharing website headquartered in San Bruno, California, which also has over a billion users.
The new reports are a little different from what was being said earlier. Weeks back, music business news site Music Ally said that Facebook was planning to enter the music streaming business and would compete against the likes of Rdio, Spotify, Tidal and Apple Music. But Facebook denied the report, telling various news outlets that it had “no plans to go into music streaming.”
Recent Success With Acquisitions
The online social networking service has had success with instant messaging app WhatsApp and online mobile photo-sharing, video-sharing and social networking service Instagram after acquiring them for billions of dollars. The addition of music videos would be the company’s new effort to expand beyond its core social network and provide its users with a ton of services and entertaining things. Facebook has made it clear in the past that they’re looking to expand. “Video is a big opportunity for us,” Facebook COO Sheryl Sandberg said during an April earnings call with analysts.
Facebook CEO Mark Zuckerberg was also featured in the call and said that Facebook was bringing 4 billion video views daily, a 30 percent increase from the start of the year, when 3 billion videos were being watched daily. Most of that percentage was from users on their phones.
The videos have brought Facebook a ton of ad deals with companies that want to be featured on the popular site. Advertising seems to be doing well for Facebook, the giant earned $3.32 billion from advertising for its first three months of this year.
Does Facebook have a chance against YouTube?