If You Move Fast, You Can Buy Streaming Service Bloom.fm for Cheap…

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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 oleg.fomenko@bloom.fm .

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.

7 Responses

  1. jw

    Bloom’s service offerings always struck me as really weird. Like they tried to shoehorn this “borrow” concept into the equation just because it’s more profitable, but it completely obscures the offering that there’s proven demand for, the full service streaming. It seems to me that they’re trying to invent demand for a rental service to subsidize full service streaming, & that’s just not anything I’d ever put money into.

    Streaming is going to take a lot of consumer education & time before it takes off, but at some point it will break into the mainstream, like Facebook. There was a time when no one thought their parents would ever be on Facebook, or would even be participating in any social networking whatsoever, now it’s positively mainstream & early adopters are early adopting something new. But the problem with streaming is that it’s so expensive in the interim… you have to be sitting on a boatload of cash & willing to wait years for a return to launch a streaming service with even remotely serious intentions. I don’t know why anyone would, not with Spotify & Deezer & Beats battling it out.

    The best thing Spotify could do right now is get the Beatles onboard, & pay them right out of the marketing budget. And then go on Oprah & the Late Night Shows & do a Spotify product demonstration on every mainstream outlet that would have him, promoting the Beatles’ arrival. And have Paul do some performances & co-promote New. Unless you’re prepared to take those kind of steps, streaming is going to be a long, hard, expensive road.

    That’s how I see it, at least.

    • john

      i guarantee the beatles contract with iTunes explicitly forbids something like this happening for at least 10 years from whenever that deal was done.

      • jw

        The exclusivity ended in 2011. The reason they aren’t on any other services is because no one has offered them enough cash… the same reason they weren’t on any other services before iTunes. That & ownership of the recordings being a big administrative mess.

  2. Yep

    Bloom.fm has a great brand and look. Whoever designed that needs a job at Spotify:) Anyway, they need to lose the ‘borrow’ thing and re-launch and simple streaming app. We need competition in this space.

    • Nina Ulloa

      yeah, borrow = queueing for offline. no need for them to make a big deal.

      • Yep

        Yep, no need to put a new spin on a subscription streaming service. Beats have made this mistake and so did Bloom. It’s very simple. The reason it (Spotify) hasn’t taken off yet, is mainly due to the hardware, awareness and connectivity.

        All of these things are now clicking into place and Spotify are in the driving seat. Bloom could work, it has a very nice interface. That alone could capture this growing market.