March 25, 2009

Last.fm sub fee outside US, UK & Germany

Today, co-founder Richard Jones confirmed Last.fm will, beginning March 30, charge EUR 3 ($4) a month for the existing “Last.fm Radio” - a catch-all term that refers to personalized, back-to-back full-track streams. The fees will apply everywhere except the UK, U.S. and Germany—Last.fm is effectively raising the pay wall everywhere it doesn’t have a significant user base.

It’s tough to monetize small audiences in a given geographic market with advertising as ads are sold locally (country by country).  And Last.fm may have to pay a relatively higher royalty for personalized radio-style streaming, making sparse ad revenues even more challenging.

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