Another Music Business Model Bites the Dust: Amie Street

Hot Tub Rock Show posting will resume shortly.

Although both I and Material Lives lamented the demise of Lala and its play once for free model, we’ve become pretty happy with the embrace of the $5/month streaming of MOG and Rdio. And ultimately, Lala’s model never made much financial sense to me. But today, Techcrunch announces that Amie Street is being bought out and (likely) ditching its innovative model, in which tracks started at a low price (as low as free) and increased to a $1 as more people bought the track. It was a fascinating model, which would make a ton of sense for indie bands. That is, if streaming didn’t offer a similar model: artists get paid more the more people listen to their music. And users get more convenience and more content for the buck.

And today, the company will announce that Amazon has acquired the Amie Street business. Going forward the team will focus on Songza, which they acquired in 2009. Amazon will redirect Amie Street to a new cobranded Amie Street/Amazon Music Service site and give users a $5 coupon to purchase songs on Amazon. But while the users and the brand are being acquired, Amazon will most likely ditch the business model, say the founders (stressing that they don’t know for sure).

[Techcrunch]

Songza, by the way, is a streaming playlist-driven radio site. Long live our streaming overlords!

Agustin Amigo, “Video Killed the Radio Star (The Buggles Cover)” [via Youtube] [Buy]

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