(UPDATE 1:52PM CST) – A Facebook spokesperson told The Verge that the company has “no plans to go into music streaming.” The Verge says: “A source familiar with the matter said the last thing Facebook wants to do right now is take on Apple in a streaming war.”
Facebook is reported to be in the early planning stages of creating its own dedicated music streaming service that would compete with the likes of Apple Music, Spotify, and the other music services.
While reports earlier in the month indicated the social network was working on the idea of creating an ad-supported native video service, sources speaking off the record to Music Ally say Facebook is now looking to build an in-house music streaming service.
Sources told Music Ally that talks for the music-video side of things are at an advanced stage, with a rollout expected to happen in the next few months.
It’s Facebook’s plans to build on this with a Spotify-style audio streaming service that are making waves within the music industry, even though the launch date and specifics of the business model and payout formula have yet to be nailed down. Sources have told Music Ally that an audio service is very much on Facebook’s roadmap, but that both the social network and rights holders realize that it has to get the monetized-video service right first.
Facebook has a track record of acquiring companies for projects like this, and its easy to imagine the company doing something similar in this situation. However, Music Ally‘s sources suggest Facebook wants to “build rather than buy,” but is reportedly flexible about the idea at the moment.
The launch of Apple Music has brought new life to the music streaming service wars, with Spotify now encouraging its customers to cancel subscriptions made through Apple’s App Store, and save $3 per month by signing up again for the service via the Spotify website.