Listen Up...and Down
Despite investments from all five major label groups, Listen.com is going through tough times -- layoffs, shifting executive roles, and changing business plans. At the time of the majors' combined investment more than a year ago, Universal Music exec Larry Kenswil called it "another building block toward the widespread consumer adoption of digital distribution of music."
It was a big deal when Listen landed the funding, and there was an expectation that the company would become a vital distribution and marketing point for the music industry. But the majors have dragged their feet on digital distribution, and Listen has struggled to find its niche.
If Listen weren't backed by the major labels, it would be a lot easier to understand the company's troubles, and those of ARTISTdirect, which includes four of the Big 5 as investors. On the surface the majors seem to have gained little from their investments in these online companies, but perhaps what they really gained was a way to gauge the market and how they should position themselves in the future.
