Facebook is rumored to be building a music streaming service to compete with Spotify and Apple Music

Facebook is reportedly planning to launch a music streaming service that will directly compete with Spotify and Apple Music, anonymous sources tell Music Ally's Eamonn Forde.

While this service is supposedly still in the initial stages of development, Facebook is preparing to launch of music videos on its social network within the next few months, according to Music Ally. Perhaps this is why Facebook has recently been in talks with major music labels?
This move would represent the first part of Facebook's push to compete in the music market.
The service will function similarly to YouTube's music video efforts, with Facebook paying royalties to rights holders, and affording them a system of registering their content to prevent piracy, Music Ally says. And Facebook will match YouTube's royalty rates at launch time.

The anonymous source told Music Ally that Facebook's music video plans are at an "advanced stage" and that the service is "way ahead of YouTube."

This experiment in the music video market would be crucial test to see how and when Facebook might enter the music streaming industry.

Business Insider has reached out to Facebook for comment and will update this post when we hear back.

NOW WATCH: How to disable all the auto-play videos clogging your Facebook feed