Andre Yoskowitz
4 Apr 2012 18:53
Grooveshark has confirmed today that it has terminated its licensing contract with EMI, leaving the music streaming service with an uncertain future.
Says the company (Cnet): "Grooveshark was recently forced to make the difficult decision to part ways with EMI due to EMI's currently unsustainable streaming rates and EMI's pending merger with Universal Music Group, which we consider monopolistic and in violation of antitrust laws. To date, Grooveshark has paid over $2.6 million to EMI, but we have yet to find sustainable streaming rates."
The company has now lost support from the Big 4 labels and there is a pending lawsuit from each of them, as well. EMI also claims Grooveshark owes the label over $100,000.
While Grooveshark will now have to take down EMI's original recordings, but the music will most likely remain since user contributions are allowed on the service and not taken down until a DMCA notice is received by the service.