MySpace purchased imeem yesterday for $1 million in cash, about 5% of what it recently paid for another leading name in ad-supported streaming music, iLike.
If you told anyone inside the industry a year or two ago if this was going to be the fate of imeem, not many would have cosigned the prediction. There was a lot of hope for the music-centric social network, just as there has been for iLike, and just as there has been for MySpace Music itself. In summary we’ve simply seen unrealized expectations across the board.
Greg Sandoval at CNET puts it best, “Internet users don’t want ads and don’t look at them when listening to songs. That’s the dilemma.”
I unsubscribed from Lefsetz a while back, so I can only imagine the glee with which he’s been ranting in the past day. But he’s probably right, as he’s been at least on this issue for some time. It’s a model that’s doomed to fail because access and ownership are key, and until a sensible subscription service emerges we’ll only continue to see the falling short we have for some time.
This is probably the major takeaway from yesterday’s deal. A few other points to note:
- It’s clear where MySpace sees its only chance at a future, and at least they have that much figured out. They’ve lost the social networking war for good at this point, and profiting by helping brands set up shop to target their audience is now a thing of the past. Music is their last stand. If anything, buying up all possible competition will help solidify them as the go-to 2.0 stop for music.
- The social media startup game is no easy task. imeem amassed a large, focused, and engaged audience. Significant traffic, a world of buzz, and a brand name we all recognize. Centered around our number 1 form of entertainment. Still it wasn’t enough to make it because there was no legitimate business model.It’s like baseball - you can look great all season but if your pitching staff ain’t on solid ground, you’ll never make it to the dance. It’s only with a great foundation, a clear and achievable revenue model, that you can turn X million views and subscribers into this:
- This probably won’t affect most of us very much. The true imeem power users will certainly see a change in routine and either jump ship to the Pandora’s and Last.FM’s, or decide to stick out whatever MySpace decides to do. Bands seeing traction there will turn their attention wherever the crowd goes. Labels will have one less property to monitor and manage. The rest of us will go on as if it never happened.
Another interesting milestone in the social media timeline. Perhaps not an earth shattering development, but noteworthy all the same.
MySpace Buys imeem and What It Means…If Anything
If you told anyone inside the industry a year or two ago if this was going to be the fate of imeem, not many would have cosigned the prediction. There was a lot of hope for the music-centric social network, just as there has been for iLike, and just as there has been for MySpace Music itself. In summary we’ve simply seen unrealized expectations across the board.
Greg Sandoval at CNET puts it best, “Internet users don’t want ads and don’t look at them when listening to songs. That’s the dilemma.”
I unsubscribed from Lefsetz a while back, so I can only imagine the glee with which he’s been ranting in the past day. But he’s probably right, as he’s been at least on this issue for some time. It’s a model that’s doomed to fail because access and ownership are key, and until a sensible subscription service emerges we’ll only continue to see the falling short we have for some time.
This is probably the major takeaway from yesterday’s deal. A few other points to note:
Another interesting milestone in the social media timeline. Perhaps not an earth shattering development, but noteworthy all the same.