Low On Cash, Jamendo Looks For Buyer
Digital music startup Jamendo made an impressive and expensive splash a year ago Midem, but now their running out of cash and looking for a buyer. After raising substantial Series A funding in 2007, Jamendo failed in its attempt to find another $2.1 million last year.
Jamendo hosts a community of free, legal music published with Creative Commons licenses. Early last year they opened an online portal where music licenses for film, tv and the web along with streaming background music for stores and restaurants. CEO Laurent Kratz confirmed to TechCrunch Europe that he and original investo Mangrove Capital Partners are looking for a suitor.
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I hate to say it but without a filter applied I have a challenge seeing any value. To be a part of this you can not be affiliated with a pro. Their rate card for foreground music services is set at zero and many of the licenses (including for TV and Film) are listed as having a 30 year term. Those types of media need perpetuity in nearly every case.
I certainly wish them the best and hope they find the proper suitor. However, some fundamental changes will need to be made to the model in order to become sustainable.