Facebook To Add Music Videos To Its Feed: Bad News For YouTube?

Recent reports have suggested that social networking giant Facebook Inc FB is in the process of seeking licensing deals with major record labels to make their music videos part of the news feed on its platform.

Ted Murphy, Founder and CEO of IZEA, was on CNBC Friday to weigh in on this and to discuss how this can have an impact on Google Inc GOOGL's YouTube.

A Win-Win

"I think, this could actually be a win-win for both Facebook and the music industry," Murphy began. "For Facebook, they would get access to premium content that they can sell premium video advertising against. That could be a very big win for Facebook. They also get access to content that really drives engagement for millenials."

Getting Millenials On FB

He continued, "So, Facebook has been struggling with people going to these other platforms that they have. People are on Instagram, people are on WhatsApp. A lot of millenials aren't really gravitating towards Facebook itself, but this video content could actually drive people back to Facebook proper."

Better Than YouTube

"For the music industry, I think, it's a huge potential win for them in that Facebook is just so much more inherently shareable and social than platforms like YouTube are. It's also been rumored that the music industry didn't really got a good royalty deal out of YouTube when they struck their deals originally. So, they could potentially go back to Facebook and get some better royalties on those ads that are being served against the video," Murphy concluded.