Report: Facebook Music Stalled By WMG
January 15, 2009 at 5:16 AM (PT)
FACEBOOK’s ongoing effort to launch a free streaming music service is stalled, reports TECHCRUNCH.COM, citing multiple sources familiar with the situation. The company was close to a deal that would bring free streaming music from three of the four big labels (UNIVERSAL, SONY, EMI) through the TOTAL MUSIC joint venture. But the deal stalled when the lone holdout, WARNER MUSIC, refused to participate.
Through most of 2008 FACEBOOK said on and off record that they had no real interest in their own music service and that third parties like iLike could continue to build their FACEBOOK music applications without fear of competition directly from FACEBOOK.
News leaked in the FALL, though, that FACEBOOK had approached a number of third parties to power the official FACEBOOK music application:
TECHCRUNCH writes that, based on discussions with a number of sources, BUZZNET, ILIKE, IMEEM, LALA, LAST.FM, RHAPSODY and other services were contacted and provided with a document (sometimes referred to by sources as a RFP [request for proposal], other times called a term sheet) that outlined certain goals of the new FACEBOOK music service.