Facebook Enters the Digital Music Race
Published Oct 23, 2009Following the news that Google will launch its own music service, developers at Facebook revealed that they've partnered with MP3 retailer Lala for a unique music venture.
According to a report from Marketing Magazine, Facebook has teamed up with Lala to offer musical "gifts" on the site. Similar to the jpeg images of frothy beers and cuddly animals that can be purchased to display on friends' walls, streaming songs could be posted by users for ten cents apiece, while an MP3 download of a track could be sent for 90 cents.
While a development like this could mean big bucks for Facebook, the social networking site said in a statement that it doesn't expect a major profit growth from the partnership. "Some revenue is generated from the Gift Shop, but advertising is still our core business and we are focused on growing that," the statement read.
Still, if the MP3 option reaches the popularity of other Facebook phenomena, like Farmville, it could be a viable stream of revenue for the site.
The Lala option was quietly added to the Facebook Gift Shop yesterday (October 22).