Snocap, the company that wanted to let bands set their own licensing terms for music downloads across the Web, has cut its staff by 60 percent, CNET has confirmed.
The San Francisco company has struggled to define a business model amid quick change in the industry, and recently had moved into new areas, setting up online stories for musicians at various sites. It said its technology can track the usage of music online, and ensure that it is being licensed properly, according to copyright. The stores were a way for musicians to sell the music. A good idea, but a fragile one considering it needed to find a way to make money from it.
We’ve been barraged by meaningless press releases from the company - four in the last month alone — that try to drum up publicity. A recent one was for aTreasure Trunk contest at the Treasure Island music festival in San Francisco.
Snocap was best known for being the post-Napster effort by Napster co-founder Shawn Fanning. Fanning had since left the company, however, starting his own gaming company, Rupture.
The blog ValleyWag first reported the story, and said the company is for sale, and a spokeswoman didn’t dispute that.
In September 2006, Snocap announced a deal to sell music on MySpace, allowing bands to sell music for whatever price they wanted, in line with Snocap’s model. Snocap would get a small cut. That deal appears to still be in place.
The company was backed with $25 million from Ron Conway, Morgenthaler Ventures and WaldenVC.
7:40 am
Blog Feeds about Music » Archive » Snocap, music-licensing company, lays off 60 percent of staff said:
[...] You can read the rest of this blog post by going to the original source, here [...]
11:52 am
Snocap Hits Hot Air and nosedives | TechWag said:
[...] Snowcap is reportedly laying off 60% of its work force, and putting the company up for sale. The sad part is just as the defection of big name bands from Madonna to Radio Head will have a major influence on the music industry, it is looking like too little and too late for Snowcap. Valleywag looks like the winner in the scoop, quickly followed by CNet and Venture Beat, and Venture Beat reports: The San Francisco company has struggled to define a business model amid quick change in the industry, and recently had moved into new areas, setting up online stories for musicians at various sites. It said its technology can track the usage of music online, and ensure that it is being licensed properly, according to copyright. The stores were a way for musicians to sell the music. A good idea, but a fragile one considering it needed to find a way to make money from it. Source: Venture Beat [...]
3:47 pm
Imeem to acquire flailing music company Snocap? » VentureBeat said:
[...] San Francisco-based Snocap, which wanted to let bands set their own licensing terms for music downloaded on the Web, is best known as the company started by Napster co-founder Shawn Fanning, although Fanning has since left to found gaming company Rupture. Struggling to find a business model, Snocap cut its staff by 60 percent in October, and was rumored to be up for sale. (our coverage) [...]
1:43 pm
Music publishing: Kobalt banks on broadening revenue streams for artists » VentureBeat said:
[...] company cut 60 percent of its workforce, but not before taking in $25 million in funding. Snocap, who we last wrote about in October, changed its business model radically: It started out helping artists to set licensing terms, [...]