Feeds

Playlist.com goes titsup

Lotsa money owed everywhere

The essential guide to IT transformation

Labels both large and small, as well as songwriters' organisations, are owed millions after Playlist.com filed for bankruptcy.

Founded in 2006 as Project Playlist, the revenue-lite operation made widgets for social network sites as Facebook and MySpace, and in its heyday boasted almost 40 million users.

The largest amount, $16.6m, is owned to Universal Music; but independent network Merlin is also owed $1.68m, with songwriters' association ASCAP out of pocket by $377,323, according to Chapter 11 documents.

Playlist.com's content delivery network partner Limelight is owed over $800,000. Other major label debts include Warners ($4.143m) Sony ($3.15m) and EMI ($2.103m). Playlist has issued promissory notes for many of these creditors.

It's hard to see how the outfit could stumble along for so long, without credible revenue. The wheeze was to scrape music on the web wherever it could find it, and allow users to play it back through an embeddable widget. A sprinkling of fashionable Web2.0rhea was sprinkled on top. And that, er... was that. About a million other people happened to have the idea at the same time.

In 2008 several major labels sued Playlist, after which Universal granted it a licence. It was Universal that ushered Playlist.com into the bankruptcy court, arguing that Playlist defaulted on that licence almost immediately. Sony licensed the operation earlier this year.

The saga highlights the risk of investing precious money in music start-ups. The music business needs to experiment, but as in so many other areas, the internet is a basketcase for making money, with hobbyists and chancers using music as a quick way to draw a crowd. So to hedge the risk, companies insist on equity stakes in start-ups. Playlist raised $23m VC funding along the way. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.