Next Big Sound (a/o May 24th):
They say to embrace failure, not give it a bear hug! According to bankruptcy court documents just filed in New York, Beyond Oblivion carries as much as $500 million in debt on the high end, and at least $100 million to start.
Sony Music Entertainment and Warner Music Group are listed as chief creditors in this meltdown. Each are owed $50 million in unsecured 'trade debt,' though Beyond Oblivion assets are listed at less than $10 million according to the Chapter 11 paperwork.
Those 'trade debts' are probably licensing costs, owed upfront or otherwise, and part of a business model that started imploding almost immediately. Beyond Oblivion never got to market, folding over Christmas with as much as $87 million in collective financing. That financing estimate has since been lowered, based on obviously-missed benchmarks.
Those benchmarks were instituted by investors like News Corp, the Wellcome Trust and Allen & Co., among others. And this never ends: those financiers are throwing an estimated $750,000 to 'wind-down' the operation.
The concept, in a nutshell, involved an ecosystem of devices pre-loaded with music content, with appropriate surcharges baked into the cost of manufacturing and buying the devices.
jkb Thursday, January 26, 2012
wow..its amazing these folks got this much investment to begin with... this is not a valid business model. what is the value of pre-loaded music, when you have spotify? You can pre-load a great deal of music on a device these days, but not near what Spotify has... I know there is a fee for spotify, but the economics still don't add up.. Sony and Warners most likely did not invest cash... probably just forwarded the licensing fees they were SUPPOSED to get from this...AS THEY SHOULD... Sony should listen to and support anyone who tries to create value for Sony's product. the cash probably came from a hedge fund that got duped...People outside the music business always seem to get stung when they come over here.
Bill Rosenblatt Thursday, January 26, 2012
I consulted to Beyond Oblivion for almost three years and am in possession of the facts. Unlike you. Suffice it to say that you have no idea what you are talking about.
lol Friday, January 27, 2012
Visitor Friday, January 27, 2012
lmao
Maxwellian Friday, January 27, 2012
You're right. What Beyond Oblivion needed was more money and time.
#snideremarkoftheday
::MW
Lee M Monday, January 30, 2012
Bill, If you're in possession of the facts perhaps you can indulge me/us and explain how a start up fails to matterialise a business from $87 million whilst racking up a $500 million debt in the process.
Start with letting us know whether it was:
a/. gross incompetence
b/. a clandestine tactic of the labels to procure revenue
c/. one helluva party for anyone involved
Old Beyonder Wednesday, March 07, 2012
Bill, let's face it, you were the brains behind the concept. Kidron used some of the smart things you came up with. Those weren't Kidron's ideas. Just wanted to point that out for everyone involved...
Spoken X Digital Media Group Thursday, January 26, 2012
The fragmented App market makes these guys' business model concept obsolete. The mobile device consumer can self-install on demand after the manufacturer or platform bake any new musical related product into the gross percentage expense of the entire industry: Write us off and enhance your hardware now!
WILL Thursday, January 26, 2012
Sandisk tried pre loaded music cards (SlotMusic?) which was compatible with some devices...don't think it made waves.
© 2013 All Rights Reserved
Follow Us