Music videos on News Feed: Facebook to take on YouTube?

While Facebook has denied plans to launch a music streaming service, the social networking giant is looking for a piece of the online video pie. It is exploring a strategy to directly put in music videos into users' News Feeds.

Currently, all videos hosted on sites like YouTube or Vimeo are shared on social networks like Facebook. These videos either redirect Facebook users to the origin site or credit the video site that hosts the content. According to The New York Times, Facebook's ability to use social connections to make content popular quickly have helped fuel rapid growth in the amount of video viewed on the service.

Since June 2015, Facebook, which has roughly 1.3 billion monthly users worldwide, has served up an average of a billion video views a day, two-thirds of them on mobile devices. About 100 million new videos are uploaded every month. That is a small fraction of YouTube's traffic. But, it is up significantly from just a few months ago.

Facebook is now attracting major video creators to its platform. Reports also indicate that it is offering the record labels better revenue sharing terms compared to YouTube.