grooveshark.com
Out of context: Reply #32
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- ukit0
I'm telling you, gone within a year. You can look at what the service is offering now and say it is awesome (I, like e-wo, am a little less blown away but I can see why people like it), but that doesn't change the fact that their business model is basically unsustainable AND they have one music company after another extracting concessions from them in court.
The last settlement, with Merlin music company, dictated that they had to pay not only fees for every single song moving forward, but for every song that was ever played retroactively. Not good for the finances of a company that is not even profitable yet.
And they still have a much larger music company, UMG, going after them. Not to try and be negative but it's a pattern that seems to crop up every few years - a couple kids (the two Grooveshark founders are ~20 years old I think) start a company that basically gives away music for free and frame it as a "new business model."
The major labels don't want to be seen as the bad guys so they don't put them out of business directly, but instead hobble them with such heavy costs that the company can't survive. A year later, and they quietly exit stage right.
- it will exist for smaller record labels. I think it's the inevitable conclusion to the evolution of music on the internets.hotroddy