Facebook Plans to Launch Music Platform in September

Published: Wednesday, 31 Aug 2011
By: Jon Fortt, CNBC Tech Correspondent
http://www.cnbc.com/id/44344540

Facebook plans to launch a music platform at its f8 conference in San Francisco on 9/22, a source with knowledge of the plans tells CNBC.

The social network's music platform launch has been long rumored, but has not yet materialized. The Facebook music launch would be significant because Facebook's huge user base (more than 750 million users) could provide a new marketplace for recording artists and music publishers.

What's less clear is exactly how Facebook's music platform would work. Checks within the music industry suggest that Facebook has not been negotiating to actually become a music retailer itself; instead, it may be creating an environment where third-party music services such as Pandora, Spotify, MOG and others can offer their wares. If that's the case, rather than threaten existing music services, a Facebook music platform could actually provide a boost in traffic to those that offer free, ad-supported services.

A music launch would fit the vision Facebook CEO Mark Zuckerberg outlined earlier this year, when he said it's now best to judge Facebook's growth based on the volume of content users are sharing, rather than on the raw number of active users.

Coming in September, a Facebook music launch would also put Facebook in closer competition with Apple, which does its annual music event in September. Apple, the world's largest music retailer, typically updates its iTunes software and updates its line of iPods in September.

Facebook and Apple butted heads after Apple's music event last year, when Apple rolled launched its Ping social network. Ping included Facebook integration, but without Facebook's blessing. Apple removed tight Facebook integration from Ping, and has since partnered more closely with Twitter, a rival social utility.

Facebook music drumbeat getting louder

http://www.sfgate.com/cgi-bin/blogs/tec ... y_id=96563

RootMusic, a San Francisco startup that helps artists like Rihanna, Katy Perry and Arcade Fire connect with their Facebook fans, received a new round of financing Wednesday amid new reports that the social network was close to launching its own music service.

RootMusic, which says it has about 32 million monthly active users for its BandPage app on Facebook, announced a $16 million round of financing led by GCV Capital.

The platform adds a page for fans to hear and share songs, watch video and view upcoming concert dates. The company launched in March 2010, but already more than 250,000 bands around the world now use BandPage and usage has increased ten fold since January 2011, said RootMusic CEO J Sider.

There have been various reports that Facebook was close to launching its own music service. On Tuesday, CNBC, Mashable and other publications reported that Facebook planned to launch its own music platform at its upcoming f8 developer conference in San Francisco on Sept. 22, with Spotify, MOG and Rdio as partners.

Facebook spokesman Larry Yu would not comment directly on those reports or what's coming for f8, but said in a statement that "many of the most popular music services around the world are integrated with Facebook and we're constantly talking to our partners about ways to improve these integrations."

Sider said he viewed a potential Facebook music platform as complimentary to BandPage.

"If something like this would happen, it would raise awareness that as a fan, (Facebook's) where I should go first to find information.

The Facebook music drumbeat may prove to be sour notes for former social networking rival Myspace, which has been trying to reposition itself as a destination for music. Indeed, RootMusic's slogan entices musicians to "Make the Move to BandPage on Facebook."