Facebook is supposed to be in negotiations with music labels to make user videos on Instagram and Facebook more attractive.
Virtual reality, videos and now music, Facebook CEO Mark Zuckerberg wants to expand the business areas of his company. Why the social network now also makes advances in established music labels.
Licensed music in amateur video is nothing new. But it would be nice if this was used legally. This is exactly what Facebook wants to enable its users. According to Bloomberg, the company is in negotiations with the rights holders.
Discussions with record companies have been around for years, but instead of having their own music service, Facebook is more likely to support its video offer with a music license. The user interfaces could be made more attractive which should undoubtedly encourage users to set more video content in the network .
In the background, Facebook could also work on a tool that, similar to YouTubes Content ID System, recognizes the use of licensed music and gives users the option to cancel their video upload. An agreement with the music labels could also lead to a cooperation with the rights holders, which makes professional music videos more firmly anchored in the network and possibly opens up new revenue for the company.
As early as 2015 it had been said that Facebook is negotiating with music labels about the integration of more music in the network. However, the company at that time showed as if it had no plans to raise a streaming service.
The business model of Facebook is mainly based on advertising revenues, which are continuously rising. For this, it needs formats, indenen the advertising is played out. So far, there are two large advertising media. On the one hand the newsfeed, on the other hand the messaging service messenger. If they are overloaded with advertisements, users can react quickly and get annoyed and leave Facebook. This is also clear by Facebook CEO Zuckerberg. That is why, last year, he warned that the time of rapid growth could soon be over.
Although this has not yet come true, Zuckerberg is expanding into new business areas. He appointed top manager Hugo Barra as the new head of the virtual reality department. He also wants to further expand media partnerships.