Myspace acquire flailing music streaming service Imeem
Myspace have acquired music streaming service Imeem for an undisclosed sum that industry experts estimate is a figure in the region of $8 million.
The service pioneered ad-based music streaming, but the $8 million sum will not go far towards covering the $30 million dollar investment the company initially received.
As a result, up to half of Imeem’s workforce now faces unemployment.
The Imeem buyout follows Myspace’s acquisition of iLike, another troubled music streaming website. Both iLike and Imeem could not support licensing costs from the major labels on ad-based revenue alone, despite Imeem receiving heavily subsidised licenses from all four majors.
Myspace itself has fallen on hard times, recently conceeding defeat in the social-networking race to Facebook. How it plans on incorporating Imeem and iLike into its Myspace Music service, which the company now claim is its main focus, could decide whether Myspace sinks or swims.