Bloom.fm Says It's 'Game Over,' But Is It?

Is it game over, or a hard reset for the lovely looking app?

Bloom.fm, the U.K.-based streaming app that secured over 1.1 million users in its first year, has announced it's "game over" for the company after an investor unexpectedly backed out at the eleventh hour. The app-based service offered a streaming catalog with 22 million songs as well as offering radio, discovery and track "borrowing" features. Bloom.fm's free tier was similar to Spotify or Pandora's free, ad-supported radio-style streaming, while the streaming aspect was available for £10 per month.

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"One particular investor, who's been with us through thick and thin and has been very supportive," CEO Oleg Fomenko explained to Billboard on the phone from London, "went through organizational changes, and some [new people at the company] had a completely different perspective. The gamble on digital music has such a thin margin, and such a high cost of starting and expanding the business, that it is not something they're prepared to take on, they rather unexpectedly said."

However, Fomenko and his team have been fielding purchase offers from a dozen different places since the news became public, and naturally encourage more. "My phone is on its third battery charge today from all the calls I'm receiving," Fomenko said. "Hopefully someone will come up with a compelling enough offer to keep the team and all our assets moving forward. It's the end as we know it, but it doesn't mean we won't emerge out of it."

Maybe Facebook is looking for a new acquisition?


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