Facebook will let creators make money on videos with licensed music

Facebook announced on Monday that it has created a new music revenue sharing program that will allow creators to earn money from videos using licensed music.

Why is this important: The move will help Facebook and its parent company Meta better compete with TikTok for creator time and attention. Previously, creators could not monetize videos with licensed music on Meta.

How it works: Going forward, whenever a creator uses licensed music in Facebook videos 60 seconds or longer, they are eligible to earn money on certain videos through in-app ads, Facebook said.

  • Creators can receive 20% of revenue from all eligible videos. A portion of the revenue will be returned to music rights holders and another portion will go to Meta.
  • Reels, even those longer than 60 seconds, are not eligible for this program at this time, the company said.
  • Creators will receive a list of songs eligible for monetization through a library.

The big picture: The move comes as Meta pushes aggressively to transform Facebook into a more TikTok-like experience focused on creators and content discovery.

  • Last week, Meta announced major changes to the Facebook app that will transform its experience into an algorithmically curated selection of videos, more akin to TikTok.

And after: The feature will start rolling out today globally for eligible creators. Eligible content can be monetized initially only with ads served in the US, but will expand globally in the coming months.

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