MOG Over Promises And Under Delivers With New Music Service

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Here’s the next contestant in the never ending stream of music services, each of which, inevitably, slide into financial disaster at some point. Music service MOG says they’ll launch MOG All Access by Thanksgiving this year. It’s an on demand music streaming and Internet radio service that will cost $5 per month. The four major labels – Universal Music Group, Sony Music, Warner Music Group and EMI Music are on board, plus thousands of indie labels via IODA and Beggars Group.

Sounds great, except users can listen to streaming on demand music for free today at MySpace Music and Spotify, which is preparing to launch in the U.S. Will MOG’s user experience be so compelling that users will pay $60/year for something they can get free elsewhere?

In January we first heard MOG’s plans for the service. At the time it sounded compelling – it combined a great user experience with a free streaming model. But the crucial part of that service has vaporized – it’s no longer free. And non-free music subscription services don’t work, despite years of attempts by major companies and startups alike.

We’ve championed MOG in the past, but this looks like yet another music failure to us. Too bad the labels didn’t agree to a pure revenue split, which is what CEO David Hyman was hoping for back in January.

MOG has raised around $12 million to date from Menlo Ventures, Simon Equity, Universal Music Group and Sony Music, among others.

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