Layoffs Reportedly Hit Samsung's Milk Music Division

Layoffs have hit Samsung's Media Solution Center America -- the parent of the company's subscriber-only streaming service Milk Music and its video-serving sister Milk Video -- according to a report from Variety yesterday (May 21) afternoon.

The layoffs reportedly affected 15 percent of MSCA's staff of 250, or about 37 people.

The news comes on the heels of Milk Music's expansion into Australia, failing to impress independent label body Merlin along the way.

Milk Music launched last year just before the South By Southwest music conference and was aimed at giving users of Samsung's Galaxy devices a web radio option outside of Pandora. The service was powered by Slacker, itself a primary competitor for Pandora -- "We're vying for the top spot," CEO Duncan Orrell-Jones told Billboard in December.

Samsung responded to a request for comment with a statement maintaining that the company "remains committed to delivering engaging, connected entertainment experiences," but does not comment on rumors or speculation.