Financial Times FT.com

Ads and labels deal double blow to music sites

By Joseph Menn in San Francisco and Tim Bradshaw in London

Published: March 29 2009 18:54 | Last updated: March 29 2009 18:54

Tumbling advertising revenues are laying waste to another wave of internet entrepreneurs as they struggle to satisfy promises of free music to users and cash flows to the labels that own the copyright.

Two popular services that allowed free listening, although not downloads, while providing a share of advertising money to record labels, have been forced to close down in recent weeks.

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