Facebook will share advertising revenue with rights holders – Music Industry

Meta just announced that it’s changing the way Facebook will pay artists and music rights holders, moving to a “revenue-sharing” model for user-generated video content.

Meta has said that video creators who choose to use licensed music in videos longer than 60 seconds in Facebook, they will receive a 20% share of the ad revenue generated by their creation. The remaining 80% of advertising revenue will be split between the relevant music rights holders and Meta itself.

It is not known how that 80% will be divided between the starters and Meta, so this is where the key to why may lie. Kobalt decided not to renew.

Meta said the move “opens up a new way to make money for both creators and music rights holders.” He added: “Since videos account for half of the time spent on Facebook, Music Revenue Sharing (the name of the new show), helps creators access more popular music, deepening relationships with their fans and the music industry.

“This new featuremade possible by our partnerships across the music industry, is the first of its kind on this scale and benefits creators, our partners, music rights holders and fans.”

The scheme contains certain limitations, for example, all content created must comply with the monetization policies, community standards and music guidelines of Facebook and to be eligible for music revenue sharing, video creators must be eligible for in-stream ads and meet monetization eligibility standards.

But presumably the scheme will become more flexible and will be extended to other Meta products and platforms in the future. And either way, the development has sparked interest in the music community, in part because it could encourage more creators on Facebook to use commercially released music instead of production music.

Meta continued, “Music revenue sharing will start rolling out on July 26 for video creators worldwide. To start, eligible videos will be monetized from in-stream ads in the US, with expansion to the rest of the world in the coming months.”

Meta says that the new release has been made possible thanks to its tool Rights Managerwhich it calls “a video, audio, and image matching tool we developed at Meta to help content owners protect their rights and manage their content at scale.”

According to his latest report Music In The Air, Goldman Sachs estimates that Facebook contributed 29% of all ad revenue of “emerging platforms” paid to the recording industry in 2021.

To date, platforms like Meta have tended to do lump-sum deals with record companies, music distributors, music publishers, and collecting societies, in which each licensing partner gets a fixed sum of money per license period, instead of revenue being directly tied to the use and performances of their music.

However, social media platforms have evolved and improved their content upload tools, and the way those tools use music. Some parts of the music community have called for those platforms to move to a revenue-sharing model, assuming it will be more profitable.

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Facebook will share advertising revenue with rights holders – Music Industry