Facebook Adding Music Services

Ethan Smith and Shayndi Raice created a Facebook Add Music service in a recent WSJ.com article published on September 1, 2011. This article explains the new move by Facebook, including a shared media service on the website. These media services include music, movies, video games, and Facebook users can share their favorite choices with their Facebook friends without leaving the site. The main characters in this article are Facebook, Inc. This is a social networking site where registered users provide open forums to create profiles, send messages, upload photos and videos, and keep in touch with family, friends, classmates.

Music: Facebook Recent Music License Executive advertisement made the music business type very excited. But music is the least accessible content Facebook can switch from hosting to licensing. Streaming music is a well-known revenue business (Spotify's total operating margin is about 17%). If Facebook needs to increase revenue as well as revenue in addition to all other content options, Facebook will lose leads through AYCE music services if Facebook can earn higher return on investment elsewhere I can not do it. If Facebook expects to change music or provide a radio-like experience for mainstream audiences (Pandora's operating margin is about 40% in 2015), or - this is Perhaps for young users it is core but not streaming service. Think about the contents of lip-sync application Musical.ly

After all, the potential advantage of adding music is enough for Facebook to find ways to avoid any obstacles. Music opens the possibility of audio advertisement and paid subscription service. Even if Facebook does not follow this path, you can access more rich user configuration data. In addition, music can reduce people leaving the site by eliminating the need for other services. People often leave open tags when browsing; streaming music provides a real reason for doing so. Better data and higher engagement will provide greater value for advertisers and will generate more revenue for Facebook.