Last.fm, the popular internet radio website, has decided to forgo its music streaming abilities and instead has partnered with third-party music streaming services based in the cloud, to allow users to listen to songs from their favourite artists.
The online music streaming service, which has more than 40 million users in 200 countries, contains track pages from several artists where users were able stream the music. However now, users will be redirected to a different page belonging to other online music services like Mog, Hype Machine, Spotify, Vevo and We7, when they click on the 'playlink' of a particular song.
Industry experts believe that Last.fm's move to stop providing music streaming services was most likely to result in cost savings for the company in form of royalty payments for the music it was hosting. As of late, UK royalty collector PRS has increased royalty rate from from £0.0022 to £0.00085 per track while royalty rates in other countries like Germany are way higher.
Commenting on the company's decision, Last.fm's Matthew Oggle wrote on the Last.fm blog that “We believe that this renewed focus on Last.fm as the definitive online home of your music taste and your base for music discovery – regardless of where you listen.”