This is hardly a frothy time for the digital music industry – or many other industries, for that matter.
But a number of music companies are rattling the exit door, perhaps tired of the tough economics and realities that accompany digital media monetization.
The recent buyout of Lala may also be to blame, despite some debate over the actual acquisition price. Either way, a string of companies are considering the exit door, including eMusic, Melodeo, and most recently, Jamendo according to information discovered by TechCrunch. “The reason is fairly simple,” TechCrunch journalist Robin Wauters explained. “Jamendo is running out of money after failing to raise a follow-up round of venture capital.”
Jamendo CEO Laurent Kratz confirmed the chatter, which first bubbled on Twitter. The Luxembourg-based Jamendo offers free music downloads, acquired through Creative Commons licenses. Additionally, the company offers content for licensing within various productions, spanning film, television, and websites.
Report by Alexandra Osorio