Facebook Offers Hundreds of Millions of Dollars for Music Rights - Bloomberg

Compete different

"Getting into business with Facebook presents something of a Faustian bargain. Rights holders need a deal. Given the current legal framework for copyright online, users are going to upload video with infringing material no matter what. The onus is on rights holders to police those videos. A deal ensures they get something rather than waste resources tracking down all the illegal videos.

Music industry executives also hope licensing songs for user-generated video on Facebook will place greater pressure on YouTube to behave. Yet by further empowering Facebook to host video and music, rights holders risk creating another YouTube –- a great source of promotion, but a place where consumption outpaces sales."

Facebook Offers Hundreds of Millions of Dollars for Music Rights - Bloomberg