Facebook is contemplating starting its very own music streaming service to compete with Spotify and Apple Music, reports Music Ally. The social network might be planning to partner with third-parties to monetize music videos.

Facebook Inc (FB) Working On Music Streaming Service

Facebook (FB) pushing into music now

The Music Ally report says that the social network is planning to launch music videos on its own platform within the coming months, but as of now, the service is apparently in the initial stages of development. This could be seen as one reason the company was in talks with major music labels.

In a report last week, The Verge claimed that Facebook Inc (NASDAQ:FB) had been in talks with record labels and Sony Music Entertainment, Universal Music Group and Warner Music Group, suggesting the company’s plan of monetizing music videos.

Last week the social networking site announced plans to expand its new ad revenue share program to content creators, and now it reportedly wants to extend it to record labels as well in a bid to host music videos directly on the platform. The recent moves can be seen as the first push from the social network to participate in the existing music market.

“It’s a mass land grab. Facebook Inc (NASDAQ:FB) going into the video space was always going to be an enormous, ambitious land grab and no doubt something they’ve been planning for some time as the potential income from ad revenue will be incredible,” one of the sources told Music Ally.

A service similar to YouTube?

Facebook’s music video plans are at an “advanced stage,” and the service is “way ahead of YouTube,” says Music Ally, citing sources familiar with the matter. Facebook’s service will operate in a way similar to YouTube’s music video efforts, says the website. Facebook Inc (NASDAQ:FB) will also reportedly pay royalties to rights holders and introduce a service for registering their content to halt piracy. Royalty rates will also reportedly be the same as those paid by YouTube at the time of launch. The report also states that the service will be launched as a separate app similar to the Messenger app. Users will see music links inside Facebook, but the content will only be available for those with Facebook’s music app.

Facebook Inc (NASDAQ:FB) is expected to partner with a third party for the music video initiative, which is expected to roll out in the coming few months. It will interesting to see what Facebook finally comes up with in an industry that already has many big players competing with identical offerings at the same prices.