Within the past few weeks, the social network has quietly initiated talks with music labels about licensing a limited amount of songs that users can upload to, say, summer vacation videos or birthday parties, sources said. The idea, if it comes to fruition, would be a way to keep music labels happy at a time when they’re frustrated about the volume of unlicensed user-generated content at YouTube.
Source: Facebook tests ‘music’ videos to keep eyeballs from YouTube | New York Post