8 Comments

Summary:

Music subscription service provider MOG has raised $9.5 million in a new round of venture funding, with UK-based Balderton Capital joining lead investor Menlo Ventures, an existing stakeholder, in the round. MOG is planning a consumer marketing push, mobile apps, and a UK launch.

Music subscription service provider MOG has raised $9.5 million in a new round of venture funding, with UK-based Balderton Capital joining lead investor Menlo Ventures, an existing stakeholder, in the round. The new money builds on at least $12.5 million in existing funding, including investments from major labels Universal Music Group and Sony Music.

The choice of Balderton as a new investor gives MOG a beachhead in the UK, where it plans to launch its service this spring. The company is also planning to introduce a series of mobile applications in the coming weeks, and is exploring integrations with networked consumer electronic devices, including set-top boxes.

MOG raised $5 million last summer, prior to the introduction of its all-you-can-eat streaming music service in early December. David Hyman, CEO of MOG, said the company will use some of the funds for an aggressive consumer marketing strategy intended to win over new users. MOG plans to extend its free trial period from one hour to three days in order to encourage new signups; the company says it’s currently converting 17 percent of trial users to paying customers.

MOG, whose service allows on-demand streaming of nearly 7 million songs from all four major labels and numerous independents, is preparing to launch iPhone and Android applications by April. MOG’s desktop service currently costs $5 a month, but Hyman has said the mobile version will cost more.

With the UK launch, MOG will enter a market in which Spotify’s free service has won considerable consumer attention but relatively few of its fans have become paying customers. Rumors have suggested that Spotify may launch in the U.S. as soon as next month’s SXSW conference, although the stateside version may lack the free tier in favor of a monthly subscription fee similar to MOG’s. Warner Music Group chief Edgar Bronfman Jr. said earlier this month that the label is no longer interested in working with free streaming services, but remains in full support of subscription models. Warner holds a small equity stake in MOG, but has never invested cash in the company.

You’re subscribed! If you like, you can update your settings

  1. Elizabeth Haggar Friday, February 26, 2010

    when I think online radio these days, it’s recommendation and personalization services like last.fm and Pandora that are pushing the boundaries. I’ve been using MOG for a few months and they have a good selection of music.

  2. Finance Geek » Record labels growing unease with ad supported music streaming services Friday, February 26, 2010

    [...] MOG Takes $9.5 Million More, In Advance of Mobile Launch (gigaom.com) [...]

  3. Pretty soon they’ll be MOney all Gone

  4. Thumbplay’s Mobile Music Service Goes Live – GigaOM Thursday, March 4, 2010

    [...] differentiator that sets it apart from incumbents such as Rhapsody and Napster as well as upstarts MOG and Spotify, the latter of which hasn’t launched in the U.S. [...]

  5. As MOG Goes Mobile, the U.S. Waits (and Waits) for Spotify – GigaOM Monday, March 15, 2010

    [...] to sign up paying customers. That may be why investors on both sides of the Atlantic have doubled down on [...]

  6. 5 Reasons I’m Still Not Paying for a Music Subscription Service – GigaOM Thursday, March 18, 2010

    [...] now appear prescient, though they never quite went mainstream, and newer ones such as Spotify and MOG are attracting big VC [...]

  7. MOG’s Music Network Gaining Fast On Competitors, Still Has A Ways To Go Friday, May 21, 2010

    [...] an on-demand streaming music service and a large network of music blogs. In February the company raised another $9.5 million in funding and it has some promising mobile apps slated for release this [...]

  8. MOG’s Music Network Gaining Fast On Competitors, Still Has A Ways To Go | Technology Magazine Friday, May 21, 2010

    [...] an on-demand streaming music service and a large network of music blogs. In February the company raised another $9.5 million in funding and it has some promising mobile apps slated for release this [...]

Comments have been disabled for this post