Former MTV exec Angel Gambino announced Friday she has left Bebo.
(Credit: angelgambino.blogspot.com)Angel Gambino, the Bebo executive in charge of attracting record labels and musicians to the site, has resigned and she appears to be part of an executive exodus at the company following its $850 million acquisition by AOL.
Gambino, Bebo's global vice president of music and content, follows Bebo's founders Michael and Xochi Birch out the door. A source close to the situation said that at least two other Bebo managers are considering a departure.
Some critics of AOL's deal have worried that Bebo's teen audience may be turned off if the site becomes too buttoned-down as it goes corporate. The news comes as AOL scrambles to defend its purchase price. Earlier this week at the D conference, Time Warner's CEO Jeff Bewkes acknowledged that AOL "may have overpaid."
In an interview with CNET News.com, Gambino acknowledged that her Bebo stock had fully vested when the all-cash deal closed last week and the extra money will allow her to spend time with her young son.
She said that she jumped to Bebo a year ago from MTV to be part of a start-up and wants to be part of another. Another reason why Gambino said she is leaving is that developing Bebo's music offering was not AOL's highest priority.
"The priorities right now are integrating ICQ and AIM," Gambino said. "They are focusing on communication tools and integrating them into the platform. Music is on the agenda but it's not tops on the agenda."
While MySpace, YouTube, and Imeem have built up their music offerings, Bebo has stood on the sidelines. Imeem has licensed music from all the major recording companies and now offers a free streaming music service. YouTube has deals to offer rock videos and to allow users to insert music into their videos.
MySpace has partnered with the top four recording companies to offer streaming music, sell downloads, offer ad-supported music, as well as sell concert tickets.
"Bebo has been nowhere with music," said one music-industry insider. "They have a very music-hungry community, but they have not done anything with it. They went to the labels a year ago and said they had plans to formalize their approach to music. But nothing has happened."
Gambino said that was due to one thing: money.
"We weren't willing to pay the money that the labels expected for the licensing deals," Gambino said. "We didn't have the cash or the resources of a MySpace. We also didn't think having loads of back catalog would be that beneficial."
Instead, Bebo has gone with a more grassroots approach, catering to unsigned artists who were interested in showcasing their music on the site.
"We tried to be creative in offering new models," Gambino said. "We created some new models."
AOL and Bebo representatives could not be reached for comment.
Last.fm says streaming leads to bigger music sales.
(Credit: Lastfm.com )Free streaming music turns people on to new music and encourages them to buy, says social-networking site Last.fm. In the music industry, this will not come as a huge revelation.
Last.fm, acquired by CBS last May, announced Wednesday that since the company launched its on-demand streaming service two months ago, CD and download sales through its partnership with Amazon.com have more than doubled.
So what does that mean?
Music discovery continues to be one of digital music's greatest vulnerabilities. Nobody has come up with a sure or simple way to help people wade through the millions of tracks available on the Web. Last.fm's numbers seem to confirm long-held beliefs of many that enabling people to sample full-length tracks is one way to spur demand.
So Last.fm can take pride in knowing it was early to an offering that some music fans might find useful--albeit one that isn't exclusive to Last.fm.
Indeed, when it comes to allowing users to test drive music before they buy, Last.fm is definitely in the back seat. Imeem offers unlimited plays while London-based Last.fm only allows a user to listen to an individual song three times.
In addition, MySpace.com is preparing to launch its own streaming service that will offer unlimited plays.
Christian Ward, a Last.fm spokesman, said the company is talking to the labels about rolling back some of the restrictions, presumably the three-play rule.
"We wanted to see how this service works first," Ward said. "(The spike in sales) will encourage more discussion about pushing those limits back."
Ward added that his company isn't worried much about competitors. He said what separates Last.fm from the others is its music-discovery engine that can suggest songs based on what a user has listened to in the past.
"Offering free access to music is one thing but finding your way through all that is another," Ward said. "Music discovery is a lot easier on Last.fm."
MySpace.com is rolling toward closing deals with two of the four top music labels, according to a report published Monday.
Sony BMG Music Entertainment and Warner Music Group are nearing deals with the social network, The New York Post reported, citing unnamed sources.
Agreements could be signed as early as this week, according to the paper.
Last month, CNET News.com reported that MySpace was testing the music industry's interest in a service called MySpace Music, a site that would be free to users and offer music in several different ways, including ad-supported downloads and streaming to PCs, according to a source familiar with the talks.
Social networks Imeem and Last.fm already offer streaming services, and Facebook has also been talking to the top four music labels about offering songs on its site, according to reports.
Representatives from all of the companies involved declined to comment.
For MySpace, the idea is a natural, considering that the site has emerged as a showcase for up-and-coming musicians. The big question is whether the service will offer downloads, which would give it an edge over Imeem and Last.fm. Those services only allow users to hear songs on their computers.
SpiralFrog continues to dodge bullets.
The troubled ad-supported music service that has needed loans to keep operating was supposed to pay creditors $7 million by April 19. At least from the outside the situation looked bad because it was only three months ago that SpiralFrog needed a $2 million loan. Where would a start-up that's only been in business for six months get that kind of money?
Turns out, SpiralFrog's managers renegotiated the loan terms and the company now has a year to repay, according to a company spokeswoman.
So SpiralFrog keeps hopping, but for how much longer?
At the end of the month, privately held SpiralFrog is due to report year-end earnings for 2007 (the company reports like a public company as part of an agreement with investors). That report could hold important clues about the company's prospects.
Early indications are that SpiralFrog, which attracted lots of media attention two years ago when it announced plans to offer free legal music, has met with mixed results.
The good news is the New York-based company topped 1 million unique visitors in January and music-industry sources say it has made several hires in recent weeks.
But the service still wrestles with the same problem it has tried to remedy for two years: a highly limited song selection.
Once trumpeted as a potential iTunes killer, SpiralFrog's music library is dwarfed by iTunes. After two years of trying to sell the four largest music companies on its business model, SpiralFrog executives have managed to sign one: Universal Music Group. It's extremely hard for a music service to compete against Apple's music store, but it's nearly inconceivable to do it without songs from all top four labels.
Meanwhile, social networks, such as Imeem and Last.fm, which stream music to users' PCs, can boast licensing deals with the majors. And MySpace and Facebook are also in talks with the labels about offering music.
Numerous sources close the record labels said SpiralFrog's problem mostly comes down to its business model. Sony BMG Music Entertainment and Warner Music Group don't have much faith, the sources said. EMI Music Group's publishing unit already has an agreement with the service and the label could eventually sign, according to one source.
Another deal breaker for the labels has been the turmoil at the company. An executive shuffle in Dec. 2006 and SpiralFrog's money troubles has given the big music firms pause, said the sources.
Those financial worries may continue to undermine the company.
SpiralFrog needed to pay Universal Music $3.3 million before it ever sold a single song. Even if managers convince another major to sign on, where are they going to get the money to pay the fees?
In the third quarter, SpiralFrog burned through $3.4 million while reporting revenue of $20,400. But the free-music service, which launched in September, had only been open for a three weeks during that period. Starting with the fourth-quarter report, we're going to start seeing how scrappy SpiralFrog really is.
MySpace Music is the name News Corp. executives are tentatively using for a proposed music service that they are pitching to record executives, two sources told CNET News.com.
The news that News Corp., MySpace's parent company, has approached the four top music labels was first reported over the weekend by the blog PaidContent. Here are a few new details on what News Corp. is running past the music companies.
News Corp. has tested the record industry's interest in a site that would offer music in several different ways, including ad-supported downloads and streaming to PCs, according to a source with knowledge of the talks. This may be why PaidContent reported that News Corp. was proposing an ad-supported download service while the blog Silicon Alley Insider said the company was backing a streaming service.
News Corp. has also broached the idea of a streaming service that featured a prominent "Buy Now" button that allowed users to purchase songs off the site, another source said.
It's important to note that these are only talks. News Corp. appears, at this point, only to be taking the record industry's temperature, the sources said. Representatives from the labels declined to comment. A MySpace spokeswoman was unavailable for comment.
One of the hurdles that News Corp. must overcome before striking a deal that includes all of the big record companies is to make peace with Universal Music Group, which filed copyright infringement suit against MySpace in November 2006.
Sources confirmed PaidContent's report that News Corp. has offered an equity stake in the new company to all the labels. But what's unclear at this point, according to the sources, is whether News Corp. is going to fully fund the new venture itself.
One source said News Corp. told music executives that the goal for the start-up would be to eventually go public.
Clearly, this is a move by News Corp. Chairman Rupert Murdoch to outflank Facebook in entertainment. The question now is what Facebook will do to counter this?
The labels already have streaming deals with social networks, Imeem and Last.fm. At this point, it doesn't look like anything could prevent Facebook from cutting a similar agreement with the labels.
Beware, SpiralFrog and Imeem. A powerful new player is eyeing your ad-supported music turf.
MySpace.com is in talks with the four major record labels about starting a free-to-consumer music service, a source with knowledge of the talks told CNET News.com on Monday night. So far MySpace and the labels are just talking, the source said, but PaidContent, the blog that broke the news, reported that the music companies are being offered an equity stake in the News Corp.-backed start-up.
A MySpace spokeswoman declined to comment Monday evening.
There are conflicting reports about whether the new music service would offer downloads or stream music to PCs. PaidContent reported that it's downloads, but Silicon Alley Insider reported that its sources said the site would stream songs.
My source couldn't confirm either way, but I have a hunch that it's streams. Here's why:
The labels have shown almost no interest in giving away downloads via an ad-supported site. SpiralFrog has struck a partnership with only one top record company (Universal Music Group) in two years of trying. Qtrax, another ad-support download service, can't boast a single major label yet, but the start-up is still negotiating.
Ruckus is an ad-supported download service that has partnered with all the big labels but caters only to college students.
Meanwhile, social networks Imeem and Last.fm stream music to users' PCs and each has signed deals with all four majors.
The labels like streaming because it locks up their music on PCs and protects it from piracy. Streaming also encourages sales, or so the music companies hope. The thinking is that Imeem and Last.fm users will eventually purchase music they discover on the social-networking sites.
What could sink my theory is if MySpace is willing to pay so much for downloads that the labels have to say yes. With Facebook breathing down its neck, MySpace could bet that offering free music to users--in exchange for looking at some ads--would be a whopping advantage over competitors.
News Corp. has the kind of deep pockets that it could afford to keep a loss leader like this going for a couple of years.
Regardless, the big winners in either scenario are consumers. Free and legal music is getting easier to find all the time.
Social network, Imeem, has acquired struggling music-licensing company, Snocap, the company cofounded by Shawn Fanning of Napster fame, according to a published report
TechCrunch, citing an unnamed source, reported that the deal is being finalized this week.
Snocap offers to handle copyright and music licensing for musicians and also powers embeddable download stores that artists can place on any site. From these digital-music vending machines, musicians sell their own music.
In October, Snocap CEO Rusty Rueff told CNET News.com that the company had cut its staff from 56 to 26.
Yesterday, the New York Times ran an article about Imeem, pegged to the news that this fledgling site has signed a third major label, EMI, leaving only Universal in the "not yet" column. The service is getting credit for trying to pioneer a new business model for digital music distribution: users can select songs and stream them for free, as long as they're willing to sit through the occasional advertisement.
I registered and fired the service up, and while I'm not ready to call ad-supported music DOA, Imeem isn't about to unseat the current digital music leaders. The main problem: I don't know what I'm supposed to be doing on the site.
... Read moreThe music industry continues to take baby steps toward ad-supported music as EMI has become the third major record label to license songs to social-networking site Imeem.
The companies said on Monday that Imeem users will be allowed to upload EMI-produced songs to the site. The ad-supported service is free to users and Imeem plans to share ad revenue with the labels. Sony BMG and Warner Music Group previously cut similar deals with Imeem. Users can post the music to their personal pages and share the music with friends, but the offering only allows them to stream music and doesn't include downloads.
Some might be misled into believing that Imeem would appear to be outpacing SpiralFrog, a company that attracted much fanfare and scrutiny a year ago for ballyhooing an ad-supported music service. New York-based SpiralFrog has emerged as the standard bearer for ad-supported music but has managed to sign only one major label to a licensing deal: Universal Music Group.
The difference between Imeem and SpiralFrog comes down to streaming. SpiralFrog offers free downloads as long as customers are willing to sit through some ads. One of the sticking points that some record executives have about SpiralFrog is that they hesitate to attach the word "free" around their music. With millions obtaining songs for free from illegal file sharing, music-industry honchos don't want to perpetuate the perception that songs are valueless.
Imeem, headquartered in San Francisco, is different in that it offers music but not to own. The service is meant to help people discover songs, and Imeem has supplied links to iTunes and Amazon in case users wish to buy a song.
Who knows, should Imeem's music offering succeed, perhaps that will help record executives grow more comfortable with ad-supported downloads.
Online community Imeem launched in August 2005, and although I wasn't familiar with the service at the time, it sounds like a blend of several popular features: social networking, instant messaging, blogging and photo sharing. At some point, the company added a feature that would let users create playlists from their personal music collections, then stream these playlists to other users. By spring 2007, the service claimed 16 million active users.
The concept was a bit like MySpace.com, and like that site, Imeem eventually drew a copyright infringement lawsuit from a major record label--Warner Music Group, in this case.
Imeem quickly responded by licensing more than 3 million tracks from various independent labels and publishers, and signing a deal with Snocap to help run a new ad-funded service.
Created by original Napster founder Shawn Fanning, Snocap provides a technology platform to track usage of particular songs so that the owners of those songs can be fairly compensated. It's a nuts-and-bolts kind of business, which is a good place to be in the music industry today: nobody knows exactly how the next-generation music business is going to look, but most agree that it'll involve digital files being exchanged over some kind of network, and somebody needs to track all those exchanges if there's going to be any music industry, rather than a billion independent artists all trying to chase their own narrow slice of action.
A couple of days ago, Warner agreed to drop its lawsuit against Imeem and offer its catalog in exchange for a cut of advertising revenues.
Could this be the model that finally causes legal content-sharing sites to take off? It's not enough for the record industry to build yet another file-sharing network, then wait for customers to show up.
To compete with the "darknet," new services have to offer something singularly interesting, such as ease of use, attractive social-networking features, or integration with existing products and services (which seems to be an approach that's working for iLike). If that's the case, these services will build an userbase until they finally cross the threshold where one or more major content owners recognize them, at which point they'll have to take the necessary steps to get legal. Sort of a completion-backward principle for online music.
