Facebook is looking to grab some of Google’s share in the music video business by introducing a ‘new Youtube’ with its Slideshow feature.
The average person spends about 1 hour and 12 minutes a day watching online videos. A huge chunk of that is via Youtube. And Facebook wants part of that chunk.
You see, Youtube is free for the user and that’s obviously great for them.
But it’s not all that great for record labels due to its 55/45 payout. Something Facebook is ready to change. And likely in the direction of other streaming services that pay 70% or higher in royalties.
The labels would still be OK with YouTube if it paid a higher royalty, but since that doesn’t look to happen soon, Facebook’s Slideshow could be their dream scenario.
Facebook, Instagram and Messenger users currently spend 50 minutes a day using the services, CEO Mark Zuckerberg revealed on the company’s last earnings call. It also reported an surprising 57 percent increase in ad revenue to $5.2 billion, and the music industry would certainly like to get a larger piece. hypebot.com
Slideshow is a move that might actually shift some gears in the Youtube payout engine. But only if it can match the exceptional user friendliness and search functionalities that the Google service is perfect in.