grooveshark.com
Out of context: Reply #13
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- ukit0
I just wonder if the numbers actually add up. You can say we're going to support it with ads and it sounds like a win for everyone but I feel like if the economics of it really worked the music industry would have jumped on it years ago.
The funny thing is, Grooveshark's whole approach was basically to launch something that was completely illegal when they first came out. They didn't reimburse artists at all, they just let people play music for free. And the labels obviously sued them but in the meantime they managed to acquire enough users that the labels decided to settle and change their business model instead of completely put them out of business. So now apparently they do pay royalties to artists when you play music. I just haven't seen any numbers that indicate a business model like this is actually profitable yet.
- They just settled with another distributor last week: http://www.digitalmu…ukit