Ad Free Last.fm Radio No Longer Free
Last.fm music channel lovers have to pay for their mobile phone service. So far, the channel provided their personalized radio as a free service on all mobiles, relying on advertisements between songs to generate revenue. Since this will no longer be possible if ad-free continuous music is to be played, consumers have to pay for the nuisance free services. Although one could use the web to listen freely, others may have to pay a monthly fee to relish the ad-free experience. It was a rational decision for the business model contemplated.
The charges are pegged at £3 a month, to listen to personalized radio stations – but songs cannot be picked to one’s liking. Other competitors like the Spotify, were already charging £10 a month for ad-free, on-demand access both across the web as well as on mobile phones.
Web users listening to Last.fm are exempt, as Microsoft is subsidizing costs to enable consumers using their Xbox or Windows Phone 7 to hear them for free.
The Web 2.0 boom had catapulted these services to a new high, with a large user base before it was sold in 2007 for $280m – £140m to CBS. After the takeover, progress has slowed down. The founders have left. Financial concerns were creating hurdles across the online industry, even as people welcomed the online radio concept. The market for this segment was large. Rajar [the radio industry measurement group] estimated that 2.6 million people in the UK used personalized radio services a week.
With money on their minds the commercialization of the web could not be helped.
Date: Wednesday February 9, 2011

































