Music Streaming Service Grooveshark Shuts Down

Posted by | December 29, 2015 | Industry News, Uncategorized | No Comments

The music streaming service known as “Grooveshark” is finally shutting down after ten years of service. A letter on their homepage last month announced the termination of the company. Grooveshark was most famously known for being a music streaming service, but they apparently failed to secure the proper licenses with a number of music producers and record companies that owned the rights to the music. Grooveshark claims their intentions were good because they wanted to help fans discover and share music with each other. But due to these legal issues regarding licenses and a settlement that was made with the recording companies, Grooveshark had no choice but to shut down completely.
Many people have misconceptions about music streaming by thinking it must be illegal or unauthorized by the record companies. The truth is that music streaming is perfectly legal as long as you get authorization from the record companies to stream their music. This entails purchasing a license from the company to legally stream their music. The company ends up getting a percentage of the earnings generated from their music streams and the music service provider ends up getting the rest. Some examples of music streaming services that are legally operating are Spotify, Google Play, Amazon Prime Music, Apple’s Beats Music and Deezer.
Grooveshark gained attention because they allowed people to just upload music files to their website. These music files were not screened for copyrights or anything. Grovoeshark basically became a file sharing website where people could just share their music files with each other. The problem with any kind of file sharing service is that illegal activity runs rampant. If somebody uploads a file that is copyrighted and illegal to reproduce, that person is committing a crime. Also the people who download the music are committing a crime as well. On top of that, the file sharing service provider will get in the most trouble for permitting this behavior. That is why authorized music streaming sites, like Google Play, put new artists that submit their music files under very strict agreements. You are only allowed to upload files to Google Play that you own the rights to. It is not a file sharing site where you can just distribute any random file to other people. Each file you upload is screened and the submitter is forced to contractual agree that they hold the rights to it. Unfortunately, this was not the business model that Grooveshark lived by which is why they were forced out of business.

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