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Why doesn't one of the labels just buy Grooveshark? Make an offer they can't resist. The record label would get some fresh talent with actual vision, and worst
by firefoxman1 15y ago
Why doesn't one of the labels just buy Grooveshark? Make an offer they can't resist. The record label would get some fresh talent with actual vision, and worst case scenario would be Grooveshark getting shut down and the founders making a decent exit.
- freehunter 15y agoStep 1: Sue Grooveshark. Make it serious, hit them with everything. Step 2: Send them a settlement offer. Make it huge. Billions. Make it something they'd never consider. Step 3: Offer number 2 - Acquisition agreement. We'll drop the lawsuit and on-board your product/talent (letting the leadership duck out with a small token) if you agree to a non-compete contract. Everyone wins.
- firefoxman1 15y agoThat is such a beautiful strategy. I truly hope it doesn't come down to that for Grooveshark (I love them), but from a purely strategic point of view for the record labels, that move would be amazing.
- macspoofing 15y agoLabels don't want a service like Grooveshark to exist, which gives away their product for nothing. If they wanted it, they could easily build it themselves.
- teamonkey 15y agoThey could build a similar service to Grooveshark that didn't give their products away for nothing. People would pay to stream EMI's entire catalogue, so long as the price was right.
- gcp 15y agoBecause they don't want to give anyone else the idea that the business idea behind GrooveShark is solid?
- firefoxman1 15y agoOoh also a very good point. I didn't think of that.
- slackerIII 15y agoBuying companies with huge and unknown legal liabilities is generally a bad idea.
- firefoxman1 15y agoAhh good point.
- zoom 15y agoBecause then Grooveshark doesn't get punished.
- revdinosaur 15y agoIt's because the major record labels already chose their strategy when they became record labels. They exist for the purposes of managing and licensing IP and suing those they believe are infringing. Bottom line: what do they want fresh talent for when they've made so much money doing this?
- tibbon 15y agoOne could buy them, but now that label would be pissing off all the rest and a liability. Unless they all bought a portion, but that will never happen.
- gerggerg 15y agoThats a really great question. The main reason is because the other labels would still want to sue. Now why can't they all just buy grooveshark together? Because we have anti-trust laws that prevent them from working together like that. So why don't they just work with grooveshark to get the licensing deals they want and capitalize on the huge userbase? Because the labels see it in their best interest to keep this grey area dangerous to enter. If they struck up a deal with grooveshark more people might get into the game seeking to grab the music industry by the balls and that's not what the RIAA wants. They want a firm grasp on everyone elses.