Turntable.fm failure

Turntable.fm

Online interactive platform for DJs and listeners

Description

Turntable.fm was an online interactive platform on which DJ, fans and casual listeners were brought together. People could choose avatars for themselves, browse different music rooms and create a playlist.

Stats

Category
Music
Country
United States
Started
In 2011
Closed
By 2013
Number of Founders
One
Name of Founders
Billy Chasen
Number of Employees
Between 1 And 10
Number of Funding Rounds
1
Total Funding Amount
$7M
Number of Investors
10
Precise Cause of Failure
Bad Business Model
Business Outcome
Shut Down

Cause of Failure

The company shut down its services two and half years after its promising launch in order to conserve its remaining venture capital to focus on the live version of their startup. The cost of running this music service proved to be too expensive and was not financially viable for them. Turntable.fm decided to play licensed music which proved to have drained their time and capital. Although the platform originally raised $7.5 million as soon as they started to expand internationally things got out of hand. They also weren't fast enough to adapt to the new mobile era.

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