WHY MUXTAPE’S PROBABLY GONE FOR GOOD

Both Val­ley­wag and Sil­i­con Alley Insid­er point out that one of the rea­sons Mux­tape shut down prob­a­bly was­n’t the R.I.A.A., but all the costs asso­ci­at­ed with run­ning a mas­sive stream­ing music data­base. One of the things I’ve noticed about Web 2.0 is that music con­tent is seen as more of a lia­bil­i­ty than an asset when grow­ing a busi­ness, as the Mux­tape shut­down demon­strates. That is to say, there’s prob­a­bly no bailout com­ing, at least not for Mux­tape as we knew it. The bot­tom line is if you’re bull­ish on “music 2.0,” Mux­tape’s sit­u­a­tion should be a case study for any­one who’s try­ing to find the right niche for music online.