Meta is introducing music revenue sharing that will see artists and labels directly earning from UGC consumption.
The licensing arrangement was previously based on lump sum payments.
Video creators who include licensed music in their videos on Facebook will earn a 20% share of in-stream advertising income, with the rest being divided between music rights-holders and Meta, which is headed by CEO/chairman Mark Zuckerberg. The breakdown of that 80% has not been confirmed.
“This feature is the first of its kind within the music industry,” said Meta in a blog post. “No other platform offers creators this type of revenue model at this scale.”
The revenue share applies whenever a creator uses licensed music in their videos on Facebook that are 60 seconds or longer. The model has not yet been extended to Meta’s Instagram.
Other platforms such as TikTok have signed licensing deals with the music industry based on lump sum advance payments for a set period, which do not reflect consumption of individual videos and artists.
Video makes up half of the time spent on Facebook, according to Meta.
Creators can monitor their progress on expected earnings from in-stream ads in Creator Studio.
Music revenue sharing will start rolling out today to video creators globally. To start, eligible videos will monetise from in-stream ads in the US, with expansion to the rest of the world where music is available on Facebook in the coming months.