CBS is paying 280 Million dollars for
Last.fm.
Last is claiming to revolutionize the music by mixing in the community rankings of its user base. Competing with sites like
Pandora,
iLike and others
Last.fm is utilizing the benefits of the community to provide more precise song raitings and rankings along with additional user content. With 15 Million active members, CBS is paying approximately $18+ per user which looks like a decent deal if compared to
Yahoo's $243 dollars per user for the
Bebo deal.
"Last.fm is one of the most well-established, fastest-growing online
community networks out there," said Leslie Moonves, President and Chief
executive of
CBS. "Last.fm adds a terrific interactive extension to all of our properties
and also is a huge step in
CBS Corporation's overall strategy of
expanding our reach online to transition from a content company into an
audience company."
Purchase like this, will certainly protect Last.fm from the
Internet Radio Equality Act (IREA) by allowing it to tap into the bigger pockets of CBS.
Among the
IREA changes are :
- Its basic royalty increases are 250% above the previous rates.
-
It also requires a wholly new “per play” royalty calculation process
and payment scale for stations that have significant online streaming
listeners, an approach that is simply unworkable (as well as
unaffordable) for public broadcasters.
Such increase in fees is bound to decrease
Last.fm's competition by several fold, which may just be the event
CBS is banking on right now.