Last.fm to start charging for mobile music streaming. Last.fm will make mobile streaming a premium service from next week, according to the company’s blog. Users of the service will be charged £3 a month via PayPal or credit card. However, music streaming via the website or desktop app will remain ad-supported. The changes in Last.fm’s subscription model will take place from next week, according to a post by Matthew Hawn, Last.fm’s VP of product. “On the Last.fm website an ad-supported, free-to-listeners model is what supports our online radio services in the US, UK and Germany. Hawn also said Last.fm listeners using Microsoft’s Xbox Live and Windows Phone 7 devices will be able to use the service free of charge. Other Last.fm services, such as such as social networking and recommendations, will remain free of charge. Can online music services make money? There has been a run of bad news in the world of online music. Last November, Spotify revealed it made an operating loss of £16.4m in 2009 - despite 250,000 paid subscribers by the end of that year - and in December Sky announced it will close its online music venture Sky Songs today (7 February) due to disappointing customer take-up.
Then in January Nokia announced it is winding up its ‘Comes with Music’ service in 27 of 33 territories due to low uptake. Does this mean the online music bubble has already burst? Most industry experts believe not. The widely accepted view seems to be that Sky Songs failed for very specific reasons that do not necessarily apply to other players in the market. Adrian Pope, managing director of digital and business development at PIAS Entertainment Group says: "Sky failed for three reasons.
Perhaps the most important lesson to draw from the Sky experience is that in the increasingly crowded online music market, it is essential to get your model right. Music News and Reviews, Concert Tickets, Videos, Pictures and Free MP3s - NME.COM. Breakthrough - Home.