Apparently we’re in a tech bubble again and it seems like all the interesting social networking sites are getting sucked up by corporate vacuum cleaners. So goes Last FM, a service I liked and enjoyed but now I feel like if I use it I’m just a feeder into the CBS demographic machine. So depressing. I’m still looking for a more enlightened way to think about being a demographic. As I wrote in my commentary at Undersrtanding Media, a community is more than a demographic, it’s about organic relationships. Can the intentions of multinational media conglomerates be harmonious with the needs of the local? That remains to be seen. The track record isn’t good, but I’m holding out hope that we can compost these companies from the bottom up.
An alternative music social network is Mog, but I wasn’t too impressed with their software because it runs in the background on your hard drive to track your iTune library. Because I have over 90 gigs of music, the program repeatedly wiped out my processor. I had to finally disable the software so I could use my computer again. Maybe they fixed it. I don’t know, check it out. Also, they’re growing so fast their server is often bogged down (I had to use the Wikipedia link because their site was down). Maybe the service should be called “Bog”!
Anyhow, this is how the buyout news is playing on the circuit:
GigaOM Last.fm, CBS’ $280 million hedge for its radio biz?:
I have been in touch with some folks who know the media business quite well, and they believe that amongst other things Last.fm could be CBS’s hedge for its terrestrial radio operations. CBS, thanks to the Tiffany Network, is widely viewed as a television company. Many overlook the fact that it owns 144 radio stations in 50 markets, a business that brought in about $397 million in revenues in the first quarter of 2007, and an operating income of $156 million.
However, radio sales saw a decline of 9% (maybe because CBS sold off 39 radio stations) and operating income declined 4% when compared to the first quarter 2006. The terrestrial radio business has been feeling the heat, losing the attention battle to iPods and the Internet based music services.
The situation isn’t going to get any better, as music continues to be available everywhere. A whole generation is growing up and turning a deaf ear to the traditional radio. Last.fm, however, is moving in the opposite direction – growing, mostly because of its social features.
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