Meta to Start Music Revenue Sharing on Facebook Videos

(Bloomberg) -- Meta Platforms Inc. is introducing music revenue sharing on Facebook to help creators make money from videos that use licensed music, in an effort to better compete with rival TikTok.

Most Read from Bloomberg

• Rockstar Games Cleaned Up Its Frat-Boy Culture — and Grand Theft Auto, Too

• US Economy Shrinks for a Second Quarter, Fueling Recession Fears

• The Strong Dollar Is Wreaking Havoc Globally — And It’s Just Getting Started

• Biden Considers New Pause on Paying Back Student Loans, $10,000 Relief

• Fed Hikes 75 Basis Points Second Time, Signals Third Is Possible

A new tool called Rights Manager, developed by Meta through partnerships across the music industry, will also help content owners protect their rights.

Video creators will receive 20% of revenue on eligible videos, with a separate share going to music rights holders and to Meta, the company said in a statement on Monday. Videos must be at least 60 seconds long and there must be a visual component as well. The licensed music itself can’t be the primary purpose.

The feature will start rolling out Monday to video creators globally. Eligible videos will earn money with in-stream ads delivered in the US initially, and that will expand to the rest of the world where music is available on Facebook in the coming months.

Most Read from Bloomberg Businessweek

• How a Sextortion Victim Hacked Back and Put Her Attacker in Jail

• Axie Infinity CEO Moved Crypto Tokens Before the Company Revealed Hack

• The Buy Now, Pay Later Juggernaut Is About to Be Tested

• Black Swan Hedge Funds Are Booming in Scary Times

• Return-to-Office Strategies to Avoid Being There All the Time

©2022 Bloomberg L.P.