What Happened

Facebook approached artists and music companies about obtaining exclusive rights to music videos, even if just temporarily, and was also amenable to pay for costs of production in certain cases, the Bloomberg sources said.

The social media company has reportedly promised the artists and music companies that such videos would also be promoted on the platform.

Why It Matters

The Menlo Park, California-based company on Thursday posted an earnings per share of $1.80, with total revenue of $18.69 billion, for its second-quarter this year. The numbers beat analysts’ expectations of $1.39 EPS and $17.4 billion revenue.

Zuckerberg said during the earnings call that the platform is trying to expand into video features so as to build a “community” of fans. He added that it’s “something that is just a lot harder to do on a YouTube or a Twitch or other products like that,” Bloomberg reported.

Facebook has reportedly entered into partnerships for rights to use audio before, but has never struck similar deals for video. Video advertising is said to be a lot more profitable than other forms, Bloomberg noted.

Alphabet Inc’s (NASDAQ:GOOGL) (NASDAQ:GOOG) video streaming portal YouTube currently accounts for 46% of all music streaming listening time globally — excluding China, according to industry information portal Music Business Worldwide.

Facebook was previously reported to be looking to start streaming officially licensed music videos by August.

Price Action 

Facebook shares traded 5.5% higher at $247.50 in the pre-market session Thursday.