Internet radio platform 8tracks is shutting down all operations after December 31st, 2019. The platform currently has just shy of a million monthly active users.
8tracks Founder David Porter broke down some of the reasons behind the tough decision in a blog post. Ultimately the company struggled to adapt in a hot market as competitors such as Spotify took market share.
Much like its competitors, 8tracks also struggled to find a path to profitable scalability. The final nail in the coffin, however, was when a recent prospective buyer fell through. The company no longer has the cash flow to continue, thus forcing them to shut down.
Porter shared the company's story and decision-making process in great detail. One illuminating development came in 2013 when the company could no longer categorize itself as a small webcaster. Given its revenues and growth at the time it became subject to new regulation as a large webcaster. This meant the company now had to pay royalties on a per on a per-stream basis rather than as a percentage share of total revenues, completely shaking up its primarily ad-driven business model.
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Porter ended by saying fans of 8tracks have the opportunity to export their playlists to Spotify. Visit 8tracks.com, search a mix, and click the "Save playlist to Spotify” button.