Sources Say Facebook Is Negotiating With the Major Labels…

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Updated 7/2/2015: Facebook has launched a video monetization program.

Facebook is one of the last major social networks that hasn’t launched a misguided attempt to enter the music space. But it looks like Facebook Music could be just around the corner…

Multiple sources have told The Verge that Facebook has been in talks with the major labels. However, sources say that Facebook doesn’t know what they want to do that yet.

Sources said Facebook wants to do something “unique”, and one source said that may involve video.

Remember what happened to Snapchat when their music negotiations with Sony leaked? Snapchat’s CEO wrote a public note saying the leak wasn’t fair and their desire to make money on music should have been private until they were good and ready. Hopefully Facebook handles this better.

 

Nina Ulloa covers breaking news, tech, and more: @nine_u

Photo from Flickr by Sean MacEntee used with the Creative Commons License.

21 Responses

  1. Anonymous

    LOL. Seriously, don’t think this is a “leak” – heads up, guys, EVERYONE is talking to the major labels and trying to get into music because it’s the new cool thing to do.

    • Anonymous

      “EVERYONE is talking to the major labels and trying to get into music because it’s the new cool thing to do”

      True, but Facebook is definitely something else…

  2. Anonymous

    This could be bigger than anything else.

    And the timing is interesting: Apple Music killed iTunes yesterday, and Music Key is going to cannibalize YouTube before long.

    Facebook Music TV, or whatever they’ll call it, could destroy both.

    With 1.44bn users — that’s more than YouTube — it’s big enough to be free (add-based). So it could be the only viral player left on the planet when Google builds its paywall around YouTube.

    Plus, imagine the way it could interact with Instagram. This could be the social YouTube you always wanted but never got.

    And it would be relevant to teenagers!

    • Anonymous

      If Instagram were properly integrated, it might even be a threat to Twitter…

      Who would want to go anywhere else?

      The only thing that worries me is Facebook’s/Instagram’s notorious censorship. I think YouTube managed to find the balance: It doesn’t allow porn and extreme stuff, but it’s open to artistic expression.

    • There is something...

      I fear the problem with Facebook could be the same than with Youtube: a PITA to to create or manage playlists and shuffle songs. Not everyone listen to music in front of their computers. That’s where Spotify or Apple Music players are FAR better at.

      Also, teenagers don’t like Facebook that much anymore: their parents and grandparents are all over the place !

      But if Facebook would allow to monetize videos on their own service, that would good news I think…

      • Anonymous

        “teenagers don’t like Facebook that much anymore”

        …which is why it needs (uncensored) music.

        “if Facebook would allow to monetize videos on their own service, that would good news I think”

        Indeed, it could be huge.

  3. Anonymous

    “Facebook doesn’t know what they want to do that yet.”

    wut?

    • Anonymous

      What she means is that Facebook wants to try something new.

      And it may very well succeed.

      Apple and Google haven’t done anything new for years, while Facebook is involved in stuff like Oculus Rift.

      • danwriter

        He or she is pointing out a grammatical error.

        • Anonymous

          …because that’s really, really relevant…

  4. clintone.com

    Facebook wouldn’t survive. Facebook is about narcisicism. Look at me, look at my kids, look at my cat, got my hair did etc. Look at this band goes against everything the platform exists for. I wish people would face the fact its over. Once digitized a product goes though the 6 D’s of exponential framework. Digitized (CD) deceptive (10 year run) disruption (napster) dematerialized (iTunes) demonetized (spotify) democractized (free to the world). Everything that becomes information technology suffers this fate. Stop holding onto the past. Dinosaurs does because they couldn’t evolve and a linear view of the world will be your undoing. Think exponential.

    • Me2

      BOLD (Book by Peter H. Diamandis, Steven Kotler ) outlines the 6 D’s, just in case anyone is interested. The rampant trend of not crediting sources is irritating me today.

      It’s a fine book of techno-determinism, and how YOU can profit.

      Here are some more D’s they left out:

      Duty (to society and rule of law)
      Decisions (about the kind of world we want to create)
      Doctrine (policies, principles, laws)

      And if you think that cloud server and ISP infrastructure, satellites and fibre optic networks, code programming, iPhones, and yes movie, video, news, and music creation are all free, or are trending to do so, I got another D for ya:

      DELUSIONAL

  5. Anonymous

    Whoa — it’s a thing!

    “Facebook is offering video creators like the NBA, Fox Sports and Funny or Die a revenue split from ads sold alongside their videos beginning this fall. It’s the first time Facebook has done any kind of revenue share around video, and the pitch to content creators is pretty transparent: Share your content with us and we’ll share some of the money we make back with you.

    The move is a full-on attack against YouTube, which has dominated the digital video market for the better half of a decade. Facebook has been able to attract content creators because of its massive reach, but now it’s offering them the one thing YouTube has offered for years: Money. YouTube also uses a revenue split to entice content creators — the same revenue split, actually — with 55 percent going to the video creator and the remaining 45 percent staying with the platform. ”
    SOURCE: re/code

    “One day after a Variety report highlighted Facebook’s new ad revenue sharing program, a source with knowledge of the talks tells Billboard the social networking giant wants to conduct a test run through the end of this year, with selected music videos — chosen by the labels — being presented in the main news feed of users […] Facebook is the natural contender for YouTube’s title as online video leader. Fortunately for a record business is search of digital growth, content owners will be the ultimate winner of this battle.”
    SOURCE: Billboard

    Man, I’ve been hoping for this since I saw YouTube’s suicide note (aka Google’s Music Key contract).

    Twitter could’ve been so much more fun. But Facebook is certainly OK in a slightly boring/conservative Microsoft kind of way.

    —————————————
    🙂 The real Anonymous 🙂

  6. Anonymous

    Nina, you need to update your article — this is beyond huge.

  7. Anonymous

    I wonder if you can embed Facebook videos in your tweets… 🙂

    Then there would be no reason to use YouTube anymore.

    Imagine that.

  8. Anonymous

    According to The Guardian, Facebook videos are actually watched more than 4bn times a day!

    And that’s going to explode now.

    • Anonymous

      …also, those 4bn daily views are up from 1bn a year ago.