Tuesday, December 31, 2019

8tracks to Cease Operations Effective 2020

8tracks internet radio is shuttering all operations after 11 years.

Internet radio platform 8tracks is shutting down all operations after December 31st, 2019. The platform currently has just shy of a million monthly active users. 

8tracks Founder David Porter broke down some of the reasons behind the tough decision in a blog post. Ultimately the company struggled to adapt in a hot market as competitors such as Spotify took market share. 

Much like its competitors, 8tracks also struggled to find a path to profitable scalability. The final nail in the coffin, however, was when a recent prospective buyer fell through. The company no longer has the cash flow to continue, thus forcing them to shut down. 

Porter shared the company's story and decision-making process in great detail. One illuminating development came in 2013 when the company could no longer categorize itself as a small webcaster. Given its revenues and growth at the time it became subject to new regulation as a large webcaster. This meant the company now had to pay royalties on a per on a per-stream basis rather than as a percentage share of total revenues, completely shaking up its primarily ad-driven business model. 

Porter ended by saying fans of 8tracks have the opportunity to export their playlists to Spotify. Visit 8tracks.com, search a mix, and click the "Save playlist to Spotify” button.



source https://edm.com/news/8tracks-cease-operations

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