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Summary:

Social music site Imeem unveiled an iPhone application this morning, a few months after releasing its initial mobile app for Android. But although Imeem is best known for offering free on-demand music streaming from all four major labels, the new iPhone app doesn’t let users listen […]

newimeemSocial music site Imeem unveiled an iPhone application this morning, a few months after releasing its initial mobile app for Android. But although Imeem is best known for offering free on-demand music streaming from all four major labels, the new iPhone app doesn’t let users listen to any song, anytime — that would pose too direct of a threat to Apple’s iTunes Store.

Instead, Imeem’s app offers two key elements: a Pandora-like radio function that streams songs from a given artist mixed with similar fare, and a “My Music” section that allows streaming access to a user’s own library of uploaded songs. The latter essentially expands the music storage capacity of the iPhone, but there’s a catch: Users have to pay for a storage locker of more than 100 songs, via subscription plans that range from about $30 to $100 annually. In this way, Imeem is competing with Apple on its own hardware — and Apple is letting it happen. The iPhone’s relatively limited storage capacity (up to 16MGB, including apps and other software besides music files) isn’t enough for most serious music fans, so Imeem is providing an avenue to iPod-like capacity via a cloud-based subscription service, so that listeners don’t have to carry a second piece of hardware. (The app itself remains free to download, but an Imeem library of up to 20,000 songs will cost $100 annually.) Of course, future generations of iPhones could include much more storage capacity, potentially obviating Imeem’s service in time, and the cloud-based subscription service is still only as good as the connection on which it runs.

Consumers have come to expect free on-demand streams of just about any song via the desktop. What remains to be seen is how closely Apple will allow app developers to approximate that experience on the iPhone. While “Twitter-for-music” site Blip.fm readies its own application, the Boombox app, built by another developer on Blip.fm’s platform, offers streaming access to a moderately substantial, but still limited, library as long as a user is connected via Wi-Fi. Both Imeem and Boombox also drive song sales via iTunes.

For Imeem, the mobile apps represent a new path to monetization. The company is moving away from a purely ad-supported model and finding other ways to squeeze cash out of users, including selling ringtones and tickets. The company has struggled in recent months, losing the confidence of investor Warner Music Group and possibly other stakeholders such as Sequoia Capital, although it has apparently raised $2.3 million of a projected $6.5 million round in the past few weeks. Sequoia, Warner, Morgenthaler Ventures and Universal Music Group have invested north of $50 million total in the company since its inception.

  1. no thanks. i’ll stick with the app from SimplifyMedia http://www.simplifymedia.com and stream it anytime from my own computer for free. and they both suck because you can’t multi-task on iphone yet anyway. i wish that would change.

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    1. totally agree with your view …. i want an free music app that allows me to do multi-task.

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  2. Don’t forget about LaLa, which works similarly to Imeem and Simplify Media, but is more about the “music in the cloud” and unlike Simplify it doesn’t require my machine be on. I’ve recently uploaded my entire library to LaLa (they already had most of my tracks do I didn’t have to upload them) and the experience of being able to listen to my music wherever and whenever has been great – a major leap forward in web-based music as far I’m concerned.

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    1. Sounds great! Do you know if I could stream music i have downloaded from Rhapsody? Or music that is WMA DRM?

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  3. iGreatness has 16 GB, friend.

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    1. Paul Bonanos Thursday, May 14, 2009

      Fixed. Thanks for the heads-up, B.

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  4. Genius move.

    Based on recent numbers, streaming music apps on the iPhone are a great place to be. Obviously, being able to call up any song at any time is wonderful, but based on the most recent — and sadly, public — news on Imeem’s finances, I can’t imagine a better compromise.

    If you have any doubts that streaming iPhone apps are profitable, check out what Pandora did
    http://www.appscout.com/2009/05/pandora_iphone_driving_revenue.php

    Just a marketing fight for them now.

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  5. [...] Read the rest of the article here Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages. [...]

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  6. [...] the potential eventual loss of Imeem content, although Imeem appears to be staying afloat with a new round of funding. YouTube, meanwhile, still suffers from its loss of Warner Music Group songs last year, but [...]

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  7. [...] the roiling music business. (Here’s one: Who will buy a song on a cell phone when it’s available for free streaming, anytime and anyplace?) But for now, mobile services are a bright spot in a suffering industry, [...]

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  8. [...] considerable flexibility in working with streaming music providers. Companies such as Imeem have challenged Apple’s boundaries on the iPhone, but have always played nice, offering helpful links to buy [...]

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  9. [...] considerable flexibility in working with streaming music providers. Companies such as Imeem have challenged Apple’s boundaries on the iPhone, but have always played nice, offering helpful links to buy [...]

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  10. [...] founded by Napster creator Shawn Fanning and seen on many MySpace artist pages, in early 2008, and launched an iPhone app in May [...]

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