Normally, people go to YouTube to watch music videos. But Facebook’s on a quest to conquer the video world, and it’s mounting an assault on YouTube’s most lucrative province.
According to the Billboard and The New York Times reports, the social network has held preliminary discussions with multiple labels over the past few weeks, and is looking to start inserting videos selected by record companies in the coming months.
Facebook has told the labels that it wants to monitor their performance through the end of the year. Facebook would share advertising revenue with the labels. 55 percent of revenue from video ads will go to creators and 45 percent will go to Facebook.
Facebook knows more about its users than YouTube. Everyone on Facebook is logged in, and Facebook is methodically logging their behavior to tune its personalization algorithms. That allows it to suggest users videos that they’re likely to want to watch.
Mark Zuckerberg himself has frequently said the future of Facebook is in vivid media formats like video, which he believes will become more important than photos.
The company directly denied a report from Music Ally, a news site, that said Facebook was working on a streaming service comparable to Apple Music or Spotify. “We have no plans to go into music streaming,” a Facebook representative said.
If Facebook were able to build a stronger presence for music videos, it would put pressure on YouTube, which is owned by Google and has long had a complex relationship with the music industry.