Facebook is planning to launch a music streaming service to compete with the likes of Apple Music, Google Play Music, and Spotify, Music Ally has reported.
Citing sources whp spoke to the site off the record, Music Ally said that Facebook plans to follow a similar development path as YouTube, starting with ad-supported music videos.
News of Facebook’s trial to let content creators and copyright owners earn advertising revenue from videos emerged earlier this month when the social network introduced “suggested videos” in its iPhone app.
Variety reported that, although the “suggested videos” trial was a small-scale test, Facebook was planning to introduce interstitial ads that play automatically.
Facebook will keep 45% of the revenue from the ads and divide up the remaining 55% among partners whose videos were viewed in the suggested video window.
The revenue will be divided based on the time users spent watching each clip.
After the video advertising systems are in place, Facebook will launch a system similar to YouTube’s Content ID. This will allow copyright holders to identify videos posted by Facebook users which contain music or video content that the own.
Music Ally reported that Facebook plans to launch music videos once the social networking giant’s Content ID-equivalent is in place.
Facebook is said to be in talks with major labels about offering music on its platform.
As on YouTube, a rightsholder can then choose whether to have videos that use their content taken down, or claim the ad revenues earned by those videos.
Only once all these systems are in place will Facebook reportedly launch its music streaming contender.