Could another major ad-supported music service be about to bite the dust? TechCrunch is reporting that Imeem may be in serious trouble after failing to raise more cash or find a buyer for the company. A spokesperson denies that the company is about to shut down, but confirms it laid off some staff last week. One source tells the blog that Imeem owes the labels as much as $30 million in licensing fees to date, and although Imeem describes that as “extremely inaccurate”, it does confirm that more than a billion songs and videos are being streamed on the service every month.It’s not a great time for ad-supported music services at the moment. SpiralFrog croaked last week, and Last.fm announced plans to move to a paid subscription model in all but three countries. The music industry says it’s keen to support innovative new ways to access music, yet many of the startups offering those innovations are struggling to make the numbers add up.
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