Facebook is on a roll with staying relevant and up-to-date in the age of Twitter and Instagram. First, Facebook brought articles for various publications to run across FB news feeds. Now the social network is reportedly in talks with major music labels to stream music videos on news feeds. As recently reported by the Inquisitr, this new music video streaming trial could potentially steal video views from YouTube. It also appears that Facebook could be a potential partner with Vevo and others.
Once the initial video streaming began on Facebook in 2014, it became clear to the company that video streaming was an ad sharing cash cow. Late last year, the social network released an official statement about their plans for video streaming in the future.
“More and more, people are uploading, sharing and discovering videos on Facebook. Video views grew more than 50% from May through July of this year, and since June there has been an average of more than 1 billion video views on Facebook each day. For marketers, digital video, particularly on mobile, is becoming more important as well. Combining sight, sound and motion, video creates experiences that are, at their best, memorable, moving and inspiring — the types of experiences that help brand marketers drive important metrics, including awareness, consideration and, ultimately, sales.”
Facebook, after seeing the many video hits, discovered that users get more content from video than any other information source. In their statement, Facebook explains the discovery in detail.
“After introducing videos that start playing automatically in News Feed earlier this year, we’ve found that people discover significantly more content with this feature. And when used in combination with our new video views objective, businesses are seeing a significant decrease in cost per view for their Facebook video ads. So in the coming weeks, we’ll extend the availability of videos that play automatically to more content from more brands in the U.S.”
Now, according to Billboard, Facebook is trying to get licensing deals in which it will stream music videos like any other streaming service and accumulate revenue from advertisements. So far, no details on how Facebook plans to form a partnership with Vevo, Sony Music, and Universal Music Group will occur. The business model that Facebook’s music video streaming will run on is similar to YouTube’s, Variety reports. The profits will be 45 percent to Facebook and 55 percent to rights holders. Recently, FB’s vice president of partnerships, Dan Rose, made a statement on the mutual benefits for music video streaming on Facebook.
“We think this will be net positive for partners. They don’t have to publish anything more than they already are – and they’ll start getting checks from us.”
[Image via Recode]