The Strategist

Facebook to Launch its Own Music Streaming Service

07/09/2015 - 16:44

Facebook plans to launch its own music streaming service that would compete with Apple Music, Spotify and others. It is reported by Music Ally, citing its own sources close to the company.

The first step towards the creation of the service will be the development of monetizing music videos algorithm that are already played in the social network. For allocating royalties for the use of songs, Facebook may follow YouTube’s example of launching music content identification system that allows copyright holders to monitor the video, which features their music. They will also be able to access the social network with a request to remove a video or claim their rights. In the second case, they will receive a share of advertising revenues.

Citing its sources, Music Ally said that negotiations with the owners are actively conducted, and the music video identification system can be launched in the coming months. The publication says the system is going to be created by third parties.

As for the streaming service, Facebook is likely to come out with a new one, rather than buy an existing system, the sources noted. However, if the social network, known by its expensive purchase (text messenger WhatsApp for $ 19 billion and Oculus VR for $2 billion), does decide in favor of the acquisition of an already built start-up, the most likely candidate could be a streaming service Rdio. Its price is not specified, but it is reported that it is much less than Spotify’s estimated cost of 8.5 billion dollars. Date of possible launch, business model and the conditions of the future cooperation with record companies and copyright holders are not specified.

Microsoft has also announced launching its own music streaming service Groove. It will be integrated into Windows 10 and will get started on the day of its release on July 29.

Apple Music streaming service started out in 100 countries on June 30. It allows listening to music from user’s iTunes library and a catalog, which includes more than 30 million songs. The first three months are free, following by $ 10 a month (in the US). A family subscription for a fee a little bigger is also available.