Last.fm, the UK-based music startup acquired by media giant CBS in 2007 for $280m (£140m), made a loss for 2009 of just under $4.45 million (£2.84 million), reveal new accounts for the company. The loss posted in 2008 was £17.11 million, reflecting the high costs of streaming music, which the company has now cut. It just goes to show how expensive streaming can be…
Financials published on the UK’s Companies House show the company ended last year with net liabilities of £22.24 million, but parent company CBS is still effectively subsidising the company and will “make available such funds as are needed”. We’re hoping that CBS is getting some value out of this relationship.
Over 54% of Last.fm’s revenues in 2009 were from the UK, 33.5% from the US, 9.4% from EU countries, and 2.3% from the rest of the world.
That’s a gain on US users but the question is, is it enough to sustain CBS as a sugar daddy?