Facebook Starts Paying Video Creators, Is In Talks With Record Labels

Facebook has always left the music business to others, but that may be about to change. With video viewing on Facebook exploding, the online giant announced that it would start paying creators and began secret talks with the record labels.

Official word came yesterday that Facebook is adding ads to some videos and has begun to pay creators as much as 55% of revenue. So far, it is restricted to several major media companies, but inevitably, Facebook will allow more creators to monetize content.

In the long term, that's great news for musicians, labels and the multi-channel networks that serve them. But there are also reports that Facebook has bigger plans for music content.

In Talks With Labels

Facebook is early stage talks with the 3 major label groups about launching a "unique" music service, sources tell The Verge. While it will likely include video as a centerpiece, other plans for "Facebook Music" remain fluid.

Facebook's move into video represents the first major threat to YouTube. If an artist can both monetize a new video on Facebook and benefit from its massive social reach, will we soon see video windowing?