Why is iMeem Killing Rhapsody, Napster, & eMusic in Traffic?
iMeem has received ~$25 million in Venture Capital, currently has all 4 major labels signed to licensing deals, and has about 10 million visitors per month to their website. As for their competition, Rhapsody is doing the best with 4 million visitors, while Napster and eMusic struggle with 2 million visitors. Granted, these are great numbers, and I’d be happy if Grooveshark received this kind of traffic, but then again, Grooveshark isn’t a publicly traded company.
Startups Produce a Better ROI
For startups, the biggest hurdle really is money, money and attention. Rhapsody and Napster are in the limelight all the time. They trade on public stock exchanges, Napster carries HUGE name recognition from the late 90s and eMusic has been one of the staple eTailer of music for the past decade. All of this, and iMeem is still crushing them. iMeem has no commercials on MTV, no $50 million advertising budget, no hardware support, and they were sued by all 4 major labels. Despite their best efforts to raise as little money as possible, and get sued by 4 major labels, iMeem has been able to triumph while these household names have simply fluttered.
So the question is: why is iMeem doing so well? Personally I never had heard of iMeem prior to joining the digital music revolution, and have never really seen any of their ads or widgets or really anything on any of the sites I visit. Are startups simply better at spending limited budgets and squeezing out the best returns?
Any ideas you can throw into the ring as to why iMeem is doing so well? Yes, iMeem is an internet company, but Rhapsody also points users to its Rhapsody.com site to download music (per the VH1 commercials).
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