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Grooveshark shuts down following pressure from the music industry

Grooveshark is finally shutting down, following a lengthy battle with the music industry over streaming music without licenses and generally becoming one of the bad faces of the streaming business.

“We started out nearly ten years ago with the goal of helping fans share and discover music,” states Grooveshark in the closing statement. “But despite best of intentions, we made very serious mistakes. We failed to secure licenses from rights holders for the vast amount of music on the service.”

Part of the settlement between the company and the record labels was the closure of the streaming service, even though it had gained some reputation back for working with record labels. The issue was the millions of streams that happened pre-licenses, which have not been recorded by Grooveshark or paid.

Grooveshark does not seem terribly upset about the ordeal, instead promoting some of the legal branches of music streaming like Spotify, Rdio, Deezer, Apple’s Beats Music (currently in development), Google Play [All Access], and Rhapsody.

It is odd that Grooveshark is giving a shoutout to Spotify, after CEO Daniel Ek called Grooveshark a “pirating” firm more than anything else. It is one of the few times Ek has attacked another brand, normally he is quite open to competition and other forms of music listening.

Grooveshark is part of quite a long list of companies or apps the music industry has taken down. Napster is the infamous one that lives on in memory, alongside Limewire and other torrenting sites. Even with all of these shut downs, it doesn’t appear to be lowering the piracy rate, which is worrying for the music industry who is spending millions on legal cases to shut down services like The Pirate Bay.

David has been a technology journalist for over six years, covering a wide range of sectors. He currently researches apps, app sectors and app markets for Business of Apps, and has written for ITProPortal, RTInsights, ReadWrite, and Digital Trends.