Streaming service Bloom.fm was feeling pretty good when Apple kicked them off their iAd service in the U.K. Apple said they were a “competing service” to iTunes Radio, which is expected to launch in the U.K. soon. Bloom.fm joked that they were big time now.
But perhaps the upcoming iTunes Radio launch was seen as bad news by their investors. Bloom.fm’s main investor TNT, a Russian television network, suddenly pulled their funding. TNT has funded Bloom.fm in all its incarnations since 2010, so it came as a devestating blow to the unprepared service.
CEO Oleg Fomenko told Music Ally:
“Underlying this decision is economics – there is no business case at the moment in licensed digital music – margins are too low and up-front and growth costs are too high. The solution is a massive scale that then will allow for re-distribution of margins in the value chain…”
At first, Bloom.fm thought they would be shutting down immediately. Now, in a follow up interview with Music Ally, Fomenko says Bloom.fm will be doing a 7 to 10 day flash bidding process. “Somebody can get Bloom.fm for a fraction of what it is actually worth“. Prospective buyers can contact the CEO at email@example.com .
Nevermind that Fomenko previously said licensed digital music has “no business case”.
Bloom.fm was officially launched a year ago. In that time they’ve registered 1,158,914 users.
When Nina Ulloa isn’t writing for DMN she’s usually reviewing music or at a show. Follow her on Twitter.