29 February 2012

Mog Is Up For Sale, Just Not Officially Yet.

Mog Logo Icon

Greg Sandoval, ovar at CNET did a report on a scoop that Mog was up for sale. One that later on got non-refuted by Mog with the following statement:  “Not right now, we are always looking up at options” that reads backs more as: “Only for serious buyers and in private please”.

Struggling music service MOG for sale

The reality is not only the fact that Music Streaming as a business while being completely legit is a hard business to scale and be with. It is that there is a lot of competition and it only has got harder because the quality of the competitor is also increasing. 

Rhapsody acquiring Napster solidified them as the Top Music Streamijg Service in the U.S.A for the short and medium term future, no matter what. 

Spotify pairing heavily with Facebook assures them continuous growth for the medium term future.

Deezer is planning to go global in 2012 with a freemium + ads model that is like a mix of Spotify and Grooveshark models.

Rdio got solid backing from the Kazza/Skype/Joost guys. And from Microsoft in a indirect manner as they own a part of it now that they own Skype.

The examples above is not the complete picture but shows what a hard road MOG got ahead if they decided to continue to go alone. A road that ultimately is more likely to no get them anywhere. 

Right now i think they would do got a good chance of being acquired. And the purchaser could very well be one of the four names above. 

Spotify could buy MOG to accelerate their growth in the USA and try to overtake Rhapsody.

Rhapsody could acquire MOG to make sure Spotify has no chance is beating them in the U.S,A any time soon. 

Deezer could use it as a way to accelerate their own expansion.

Rdio could acquire MOG as a way to improve their catalog and service. And make the service more known.

In short, any of them have a good reason why would they benefit from such a purchase.

Even in this times were music streaming has got in tough times because of competition and controversy about low royalties getting to the actual artists. The market is not going to get any smaller, it will still continue to grow. But tough times like these do explain why some of the employees working in these startups do want Grooveshark to die out at the hands of the RIAA.

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