Monetising your music: Facebook pays users ad commission for featuring licensed songs

Meta has launched a new scheme that lets creators monetise Facebook videos that feature music from the platform’s bank of licensed songs, including major artists such as Post Malone and Tove Lo.  

By incentivising creators to stay within the legal bounds of music use on its platforms, Meta may can reassure the music industry that it takes copyright infringement seriously.

There has been an increasing debate in the industry over emerging social platforms, and the different models they use to pay music rights holders.

Leading music execs are starting to criticise the likes of TikTok, Meta and others for exclusively paying publishers and record labels via lump-sum licensing advances(referred to as ‘buy-out deals’), rather than sharing an agreed proportion of revenue for every monetised play/use of music on their platforms.

How it works

Creators can access a library of music licensed by Meta and receive a 20% cut of the ad revenue, while Meta and the music rights holders split the rest. 

To be eligible for music revenue sharing, video creators must be eligible for in-stream ads and meet Facebook’s Monetisation Eligibility Standards. 

In addition, eligible videos must meet this criteria:

• The Facebook video should be 60 seconds or longer and uploaded to a Facebook Page.
• The featured song must be covered in the licensed music library, which contains all eligible songs for music revenue sharing.
• There must be a visual component in the video; the licensed music itself cannot be the primary purpose of the video.
• The scheme does not apply to Reels.

A growing contributor to the music industry

In a blog post, Meta said that the move “opens up a new way to earn money for both creators and music rights holders”.

It added: “With video making up half of the time spent on Facebook, Music Revenue Sharing helps creators access more popular music, deepening relationships with their fans — and the music industry.

“Made possible through our partnerships across the music industry, this feature is the first of its kind at this scale, benefiting creators, our partners, music rights holders and fans.”

According to its latest Music In The Air report, Goldman Sachs estimates that Facebook contributed 29% of all ’emerging platform’ advertising revenues paid to the record industry in 2021, which equals just over $400m.

Meta also says it will continue to work with its music partners to expand the Licensed Music library to include more licensed songs. The company also plans to build out more ways for people to share and connect through videos on Facebook.