Facebook's Latest Music Feature Will Offer New Avenues To Record Labels

Posted at February 15th, 2017 | by Shivani Goel | in

The world’s largest social network, Facebook, is trying to break into the music industry sphere now. Since Facebook’s video aspects are becoming way more popular now, a deal is in the pipeline to govern user-generated videos that include songs and potentially pave the way for Facebook to obtain more professional videos from the labels themselves. “We’re hopeful that they are moving towards licensing music for the entire site,” said David Israelite, president of the National Music Publishers Association, an industry trade group.

Facebook’s main rival is Google’s YouTube service, which is the most popular music streaming service in the world despite their lax approach to copyright enforcement as it has catapulted many young artists to stardom and delivered a billion in ad revenue to the industry last year. Licensing music on Facebook could have major ramifications for the industry as with two billion users, the social app could give millions of new users access to the music. On the other hand, it could also disrupt the music industry’s recent surge in sales from paid services like Spotify and Apple.

The details of the deal is complex as it involves how to prevent copyright violations in user-generated videos though Facebook has reassured the industry that they will police piracy and share ad sales. Another concern is how these clips will be presented as currently the homepage throws a wide variety of information at the user.

“Facebook is a very valuable company, making a lot of money, and in part because of the music on the site,” Israelite said, adding the social network is protected by the Digital Millennium Copyright Act, the same law that can shield YouTube from responsibility for pirated material. “We are looking forward to being business partners with Facebook. If that doesn’t happen, you’ll see the situation turn very quickly.”

Source: bloomberg

Shivani Goel

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