last.fm

Filed in archive Technology on July 9, 2003

There is no question I'm a real fan of online radio. But an entirely new approach has caught my attention. last.fm is more than personal radio - it's the idea of storing all your albums online and forget CDs completely.

The biggest flaw in the moment might be the overwhelming traffic given only some users access to tracks. However the site did have some careful developers. It seems like a very well-grounded piece of application. You're not only selecting like and dislikes but you see what other users have done. After some time it refines your most liked music while trying something new from time to time.

On the other hand I'm still very much in doubt, how revenue can derive from online radio. I was reading some predictions from IDC in 2001 lately:

1. A die off will take place among internet radio providers.
2. Small online radio companies will continue to function.
3. Although personalized radio sounds great, it will not be deliverable to a
mass audience.
4. Online and offline radio will merge to a certain degree.
5. In other words, offline radio companies will be major players online.

Not bad, but nothing too difficult. Point 3 is after seeing last.fm very much in doubt for me. So what will be the next thing? My predictions:

1. Thematic niche players will succeed. The die off will go on however.
2. Only CD quality will be accepted.
3. Locally stored music and Internet radio will merge to a certain degree.
4. Streaming via mobiles could be a much stronger revenue stream as micro payment systems in this industry are already perfect.
5. Last.fm will need some VC :-)