The Story Ends For Playlist.com In Chapter 11
August 24, 2010 at 2:48 PM (PT)
PLAYLIST.COM has filed for Chapter 11 bankruptcy protection, reporting it had reported that it has $2.2 million in total assets (only $203,000 in cash) and owes the four largest record companies a combined $25 million. CNET.COM reports that while licensing costs certainly played a part in the company's demise, it wasn't the only reason.
'The start-up careened into a digital-music brick wall," reporter GREG SANDOVAL wrote. "The company adopted a risky business model (ad-supported music), an expensive legal strategy (offering unlicensed songs), and suffered a run of bad luck (losing a marquee CEO)."