In recent years the culmination of blistering mobile broadband data-speeds and powerful portable consumer electronics has drastically aided the success of online music streaming services.
Only a few years ago we began to see the roll out of such ‘good guy’ streaming services, and, on a global scale, the Last.fm platform was certainly most popular with a highly diverse audience. Possibly due to a change in strategy, where Last.fm monetised the service and removed radio streaming completely in some countries, it was obvious that there would be a big change. But since 2011 the CBS owned platform has lost 21% of total revenue year-on-year; £8.13m in 2011 to £6.38m in 2012.
With huge losses occurring in the UK, Last.fm users have seemingly migrated to different services to discover or consume music. Needless to say, as the majority of revenue is generated from pictorial and video sources, advertisers have revaluated their interest in Last.fm and altered their bids accordingly, thus representing a 69% total loss in revenue over a single year. However, in other EU countries the market seemed to not change as much except for a minor £15,000 decrease.
Whilst the latest figures show that the UK market is all doom and gloom, it appears as if America has now replaced the UK to become Last.fm’s biggest revenue maker. From 2011 to 2012 Last.fm grew by 22% in America with an overall £66m income increase.
What is clear is that the UK market has become dangerous territory for Last.fm and that the US is what it says it is - a land of opportunity.
In recent years the culmination of blistering mobile broadband data-speeds and powerful portable consumer electronics has drastically aided the success of on...