$1 million isn’t the “real” purchase price for the company. Some assets are being left behind, say our sources, including millions of dollars in accounts receivable plus some other cash. All or most of these assets, plus the purchase price, will be used to pay off some of the debt iMeem has accumulated.

About half of iMeem’s 55 employees will now work for MySpace. The rest, we’ve heard, will be looking for a new job.

One question that’s still unanswered – will the iMeem service live on? That’s completely up to the music labels, say our sources. iMeem’s deals with the labels terminate on this acquisition. The service is running at breakeven, we’ve heard, so MySpace may push to keep iMeem alive.

One thing is clear – MySpace is getting the iMeem assets for an absolute steal. I wouldn’t be surprised if other bidders suddenly get interested in iMeem and try to disrupt the deal before it actually closes.

MySpace and iMeem won’t comment on this story.

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The iMeem acquisition isn’t yet finalized, we’ve heard from sources, and awaits approval from various stakeholders.

We don’t know the price of the acquisition, but this isn’t going to be a big win for investors. iMeem has raised at least $25 million (that we’ve been able to track) plus at least another $10 million in debt. But the difficultly in making a free streaming music service work as a business model forced them to make some hard decisions. Earlier this year they renegotiated label contracts and recapitalized the company, bringing in $6 million in fresh capital.

iMeem found a way to survive a few more months. But now they’re under the financial gun again, we’ve heard, and investors aren’t willing to put more capital into the company. But MySpace is stepping in to acquire the company.

What’s in it for MySpace – the acquisition of a seasoned team with lots of experience in music. Plus the iMeem and SNOCAP intellectual property. It’s not clear if the iMeem brand will live on, but iMeem users will certainly be welcome at MySpace, I’m sure.

This is another blow for free streaming music lovers. iMeem and MySpace Music were among the last free streaming services in the U.S. And MySpace Music, we’ve heard, will soon be forced to turn to subscriptions to manage costs.

iMeem was founded six years ago by then 23 year old Dalton Caldwell The first product was social networking via a client application that included file sharing, status messages, etc. It morphed into a music streaming service over time. According to Comscore, iMeem had 16 million unique visitors worldwide in September.

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Here’s how the new feature will work: Onebox will let users stream songs directly from Google’s search result page, and will also include additional content like tour information and music videos (the actual content shown will vary depending on the partner — more on that later). Enter a query for “Use Somebody”, and you’re going to see a small ‘play’ button in your search result that lets you stream the Kings of Leon song in its entirety, or buy the song. Clicking on the play button will bring up a small browser window that will immediately start streaming your song. If you enter the name of an artist rather than a song title as your search query, Google will present a handful of popular songs by that artist with multiple ‘play’ buttons.

Here’s what the results page looks like, when multiple songs are being presented:

The new feature is being powered by two entirely different services: Lala, the innovative music site that lets people buy ‘web songs’ for ten cents, and iLike, the popular streaming music and artist hub that was recently acquired by MySpace. In an interesting twist, iLike’s appearance in OneBox will be short-lived — MySpace branded widgets will soon be taking their place. This is an important step in MySpace’s transition to being seen as a media/content hub rather than a pure social network. MySpace is also leveraging some of the new features it has recently rolled out since the iLike acquisition, including its artist dashboard and extensive library of music videos — you’ll be able to jump to a music video for a song directly from MySpace’s Onebox results (this is impressive given that the site only launched those services a week ago).

Likewise, this is also a massive win for Lala. We’ve been big fans of Lala since the site relaunched back in October 2008 with a unique business model that lets users build their music libraries in the cloud for cheap — you can purchase an entire streaming version of an album for around 80 cents, or 10 cents per song. The service’s only problem has been establishing traction, and this will certainly help with that. Expect the service’s userbase to see a big jump as millions of people on Google are exposed to Lala for the first time.

The joint partnership comes with a few quirks. Google will basically be doing a coin toss with each eligible query to determine which service will be serving up the widget. That will help the service distribute load and perhaps leaves the door open for Google to include multiple other music services, but I’m not sure it will provide the best user experience — some users may get confused when a feature in one widget isn’t available in the other.

Google VP of Search Products and User Experience kicked off the event,talking about how Google has expanded its search offerings over time, with Images (2201), Book (2003) and Maps (2007). “Music” is one of Google’s top ten searches of all time, as is “lyrics”. But it hasn’t always been easy to actually find music, which is why Google is looking to offer full song streaming directly from Google.

Google has also partnered with Gracenote to provide full lyric search — if you type in the lyrics from a portion of a song, they’ll identify the song. Song purchasing partners include imeem, Rhapsody, and Pandora, who will help with music discovery.

Google passed the baton off to MySpace, with MySpace Music President Courtney Holt outlining how much growth MySpace Music has seen and how happy the site is to be working with Google. Ali Partovi, iLike’s former CEO (and MySpace’s current SVP Business Development) took the stage, first taking the time to congratulate MySpace on acquiring iLike. He was joking, but what he says has some truth to it: MySpace made an offer on iLike before iLike could talk about the Google partnership, which iLike had been working on for a long time. In other words, MySpace lucked out with the deal.

Lala’s Bill Nguyen next to the stage, saying that Lala has always been about finding music, and then discovering more that you might like. He says that for the last ten years, music has been about business models, not discovery. Once you wind up on Lala, you can follow other users and see what they’re listening to.

The new feature will be gradually rolling out to users, with a small percentage (1-5%) having access today and rolling out gradually over the next couple days to everyone in the US.

Here’s the Lala player:

Here’s MySpace’s widget (you’ll be seeing an iLike widget temporarily, but eventually they’ll shift over to look like this):

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In case you’re not familiar with Grooveshark: it’s a great web-based music search, play and management tool that’s been around since April last year. You can use the app to instantly look for, share and listen to music, and there’s the quintessential social component that allows you to interact with people from its community and discover new music from others’ choices.

With the new look, Grooveshark’s design is now more desktop client-like (think Spotify, Deezer or Imeem), which in my opinion is a good thing. The overall design and the new navigation bar on the side make for a much smoother user experience, and you can switch themes to make the app fit your mood or resize the menus to fit your screen.

But the back-end tweaks that have increased the speed of the application are what’s making me seriously considering switching to Grooveshark for most of my online music needs. Playback between tunes is now seamless, with no more lag in between tracks when you’ve added multiple ones to a playlist. Switching between menu items and tabs is as fast as I consider possible inside a browser. In short: great new design combined with an excellent user experience.

Grooveshark is still struggling to get all major music industry players involved for the ‘legalization’ of its vast content library, which is in large part put together by avid users uploading music files straight from their hard drives. So far, the only one it has signed up is EMI and that was after the company sued Grooveshark over copyright infringement.

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In May news broke that iMeem may have found a lifeline with new funding and a new business plan, although there was still an issue of $4 million owed to Warner Music.

Now we’ve been able to confirm some of the rumors around that financing. As suspected it was a recapitalization, which means that earlier investors were mostly wiped out. A recap is a difficult pill to swallow, but once it’s completed a company can get a fresh start. And, importantly, current employees get refreshed stock options and an incentive to continue the fight.

The company raised around $6 million in fresh capital, we’ve heard from multiple sources. Most of the new cash came from existing investor Morgenthaler Ventures. Sequoia Capital and other early investors declined to participate, and so their ownership percentages dropped to miniscule levels. Warner Music also participated in the round, we’ve confirmed, likely by dropping in cash that was immediately returned to them for past debt or future royalty commitments.

The company was valued at around $6 million prior to the funding, meaning new investors took 50% or so of the company in the round. That’s a highly dilutive funding, but it gives iMeem a new lease on life. And if rumors are true, the company may have found a business model that works for them (we outlined that business model here). Profitability, albeit at a low burn rate, may hit sometime next year.

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Music plays a large role in our lives. Since the web now plays an even bigger part, combining the two together has become unavoidable. The greatest thing about this powerful duo is that you don’t need to spend a lot of time searching for music you like  — just use this nifty guide list and you’ll find just about everything you need to enjoy hours of good music. The sound quality changes from service to service, but overall, it’s good enough for regular web usage.

Please note that this is a list of services that you can use over the net without the need to download anything to your computer. This is why I’m not listing any P2P software: i.e., Spotify, as well the fact that most of us can’t really test it or use it for all that matter. This is also only the first half of this guide; part two will include more web music players (including MySpace Music, Streamzy, and others) as well as music search engines and services that make it easy to share songs on Twitter and other social sites.

Music Recommendations:

Pandora is a service that can be used only in a specific locale, this one being within the U.S. Luckily, I had the chance to test the service when it was first released and became available to everyone. Launched way back in July 2005, the project had been in the initial testing phases for five years prior to launch date. Pandora recommends music to you by matching similar musical attributes. All you really need to do is choose an artist or a band you like, and Pandora will do the rest. Pandora delivers high quality 128Kbps audio streams, offering recommendations similar to the artists you have chosen. Pandora’s player looks like a radio, you can open up to 100 stations and navigate through them quickly. Registering for Pandora will provide you with a free account (advertising-supported). Free Pandora accounts will play up to  40 hours of music for free per month, you also have the option to pay 99 cents for unlimited listening hours for the rest of that month, or pay $36 to upgrade Pandora for one year. If you want to download music from Pandora, you can do it through iTunes or Amazon. You can see our past Pandora coverage here.

With almost 3 million unique visitors a day, Last.fm is one of the most powerful social music communities on the Web today. Like Pandora, the service allows you to enjoy music that you like, but unlike Pandora, Last.fm analyses what you and your friends listen to and like, and then suggests more music based on that analysis. When you recommend music to a friend or you tag it, or you write about it, or simply just listen to it – you shift the song’s importance on the site, and will in turn get recommended to more people. Based on the music you’ve already listened to, Last.fm will recommend new music you might like, as well as suggest other users with a similar music taste to yours, which you might be interested in friending, and you can also easily communicate with them. If you live outside the U.S., U.K. or Germany, you can listen with a free 30-track trial or subscribe for a low price of $3/month for unlimited radio streaming. (Launched in 2002!)

This is how BlogMusik, looked in 2006, and this is how Deezer (formerly BlogMusik) looks today – pretty impressive change, don’t you think? The French-based service is one of the largest and happens to also be a very successful music recommendation search engine. Once registered here, you can create your personal profile and reach the Deezer community. You can create playlists, send messages to your contacts, leave comments, add artists and albums to your favorites, and more. But here’s what I like the most – The SmartRadio, which is an intelligent radio that automatically generates 3 hours(!) of continuous listening based on one artist – completely free. Priceless! You can see our past coverage of Deezer here.

I think the first Adobe AIR application that I ever tried was Finetune. Finetune provides you with the most interesting new playlists of related music from your choice of artists. Besides the site’s community where you can browse, listen to music, create a profile, connect with other users and more, Finefune also has some cool feautures to complete their suite, and each tool gives you an extraordinary music experience. Take for example the Finetune Wii project (which can be played also over the web), it’s a great sight and sound for the eyes and ears. Just enter an artist’s name and Finetune will create a playlist with similar music that will play for hours. Best of all it’s free, and you also get an iPhone, Facebook and a Desktop app that all sync with your music playlist, no matter where you play it from. You can see our past coverage of FineTune here.

Also worth mentioning in this same topic group are, of course: Ilike.com (acquired by Myspace), and music.strands.tv

Independent Music:

Amie Street is a home for musicians. The service allows music fans to discover new and independent music. Visitors at the site can search for new music based on genre, region, or recommendations. Fans can also search for music according to its price -  Amie Street is actually the only marketplace where listeners determine the price of the music. How does it work? Every song is originally priced free or very inexpensive and increases in price, up to 98 cents, as more and more users purchase it. Musicians then get 70% of the revenue from each sale. Additionally, Amie Street matches you with music that you might like, for example: I couldn’t locate Coldplay on the site, but I got more than 70 results that sound similar to the band. Obviously, this exposes me to music that I’ve never heard before, which is always a welcomed experience. You can see our past coverage of Amie Street here.

Why is Jamendo one of my favorite music services? It offers the largest catalog of music under Creative Commons licenses – worldwide. And, not only are all of the albums free to download, there’s also a large chance you won’t know any of the artists. If you already have an open mind about music, surely it won’t stop you from listening to some new albums, right? The best way to find music at this site is to search by the genre tags. Found something that you like? You can review, comment, rate, share and as I’ve said download it for free.  The service is available in seven languages, and has an iPhone app that you can download for free. Business model? Yes they have one too.

SoundCloud is by far the best looking music application there is today. It offers a great interface, a great user-experience and above these all, great music! SoundCloud lets music professionals receive, send and distribute their music. The service allows professionals (and non-professionals) to exchange, and follow music and musicians at the site. It’s a full community where people can easily communicate with each other based on shared tastes, but it is also a place where musicians can store and showcase their music using high quality standards. With the free account, you can only upload 5 tracks maximum per month, but if you are an industry fanatic and you find this plan to be somewhat lacking, you can check the pro page for packages that are more suitable to your needs. See our past coverage here.

TheSixtyOne allows artists to upload their songs and lets thousands of listeners decide whether they like it or not. The most popular songs hit the front page. Think about it as a Digg for music, the more people heart a song, the higher it goes. The site connects musicians and fans, giving them all the tools to communicate with each other. For artists, it’s good place to promote their work. For anyone else, it’s a wonderful place to discover and support new music.

Create & Listen to Playlist:

I’ve never been very much of a Project Playlist fan, but I have to say it’s a good service. Ultimately, it’s a community based on playlists. You don’t have to register to be able to listen to the music, but once you do, you can start building your playlist and enjoy more features such as the Playlist IM, which is a chat system similar to Facebook where you can connect your ‘playlist’ friends or even friends from AIM, Facebook, Yahoo Messenger, etc. What else? You can write blog entries, upload photos, privately connect with other members, browse thousands of other music playlists, comment, share, and much more. My guess is that people use this site mostly to share their playlist on their blog/site or social network. Playlist allows you to grab a playlist code and embed it anywhere you want. One thing that bugs me though is that the member’s search feature is missing. Today, when everything is so connected to your identity, this is a must have feature. On the other hand, I was impressed to see they saved my playlist from 2006…

Jiwa.fm allows you to create personalize playlist and share it in the Jiwa.fm community or with friends & family. As a member, you are able to share, exchange, and explore music. You can also expand your tastes with the SmartRadio tool. I found this service to be unique in a way because no matter what you are doing at the site, it won’t prevent you from listening to your playlist, it just plays in the background. Amazingly, when you click on an artist from within a mixed artists playlist, it will automatically create an album playlist of that artist. You might find the site to be a bit cluttered at first time, but once you get it, it works like a charm – highly recommended.

At Jogli, you don’t really need to create a playlist – they create it for you. Think about it as a giant web-based CD store where you can search for an artist, see all of his/her albums, and then listen to them exactly as listed in original CD  Let’s take Michael Jackson for example: Here you can find all his discography, and listen to his CDs one by one. Clicking on the button ‘Play Radio’ will open a radio station generated from music you might like from similar artists. As a registered member, you are able to save playlists, write reviews, and more. You can also import your playlists to Last.fm or iTunes to make it a video playlist. Check out our past coverage of Jogli here.

MixTube would have been better and easier if they allowed you to search for Youtube videos on their site to create a playlist. But no, you have to supply them with a Youtube URL, which means, you’ll have to go directly to Youtube, search for a song, then copy-paste that song URL back into MixTube. Thus, I found it to be frustrating. But looking at the bright side, you can always search for someone else’s playlist, and save yourself time and agony. One word about the Youtube music integration – lots of services use it, but unfortunately, it doesn’t offer you much control of your playlist, and what plays today, may not play tomorrow..

Lala is another great music store/playlist maker that we’ve covered extensively since the site relaunched last year. It allows users to listen to any song they want one time. If you want to listen to a song more than that, you buy a 10 cent ‘web song’ that lets you stream the song from the cloud as many times as you want (you can also purchase a full download of the song as you would from iTunes or Amazon). The site has a great integrated music player and a variety of pre-made playlists built by other users.

Worth mentioning: Imeem, and Maestro.fm

Music Visualization:

There’s no doubt in my mind that Musicovery has a strong following of avid users. The site is an interactive and personalized webradio enabling its users to generate in a few clicks a musical program adapted to the various listening situations and their preferences. Their unique mood matrix proposes a relationship between music and mood in an ergonomic and attractive manner. I’ve submitted this item about the service to Digg in 2006 and it’s good to see the site still works . But things have changed. You have limited navigation if you’re not a pro user ($15/3 months or $48/12 months), but once you are – the sky is the limit. In any case, this service will blow you away.

CitySounds.fm is perhaps just a mashup site, but it’s a good one! CitySounds.fm collects music from SoundCloud and pictures from Flickr to create a wonderful music experience from a single page. You can listen to the latest music from cities all around the world. At the top are the most active cities and the list is constantly changing as new music is being created.

Web-Radio:

Very similar to Last.fm in concept, Jango allows you to create your own custom radio stations and share them with friends. Just type in what you want to hear – and your station will immediately play the music you want along with similar favorites of other Jango users who share your tastes. You can customize your stations further by adding more artists and rating songs. Each artist get a page, containing the web-radio, the music playlist, biographies, events list, comments from members at the site, and fan list for easy communication. The service claims to be legal and says it pays royalties due to all labels/artists every time a song is played. Moreover, Jango runs a program called Jango Airplay. This program gives emerging artists an unprecedented opportunity to be proactively exposed to the millions of visitors at the site. See our past coverage of Jango here.

RadioBeta is an efficient way to locate radio stations in your area or around the globe. You can search stations by geography, genre, band, language or tags. You can listen without signing up, or you can log in and create your personal dashboard with favorite stations that  you can then listen to on a daily basis. We mostly hear radio on the go, but now you can easily track your favorite radio stations on the web. All the radio stations are public so you aren’t asked to pay anything to use the site.

OK, TheRadio is also one of my favorites because of its simplicity. Entering an artist or a genre gets you custom channel, but if you go over the channel listing, you will find much more interesting suggestions. I don’t know about you but I actually like when someone else picks the music as long is it in the range of my request. Anyway, TheRadio does a great job on finding music that I like – it simply works.

Aupeo fits in the Recommendation list as well as this category. The service lets you experience music in a fours different ways: by Stations, Artist, Mood, and Personal. The Stations area is pretty limited if you don’t have a pro account, but you can still get the feel of it. In the Artist zone, you enter your favorite name and choose from a variety stations suggested. The coolest way is the Mode area, which plays music based on your chosen mode. These stations are created by music experts, says Aupeo.  The Personal station streams music based on your music behavior at the site. Overall, very intensive and powerful!

Worth mentioning: Tun3r, Mugasha, and  Play.fm

That’s it for Part 1 of this music guide. If you have any other suggestions related to these groups, you are more than welcome to add them in the comments. In the next part of this post, I’ll offer the best options for Music search engines, Music web-players, Twitter-Music craziness, and more. Stay tuned!

Image by RossinaBossioB on Flickr.

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Does embattled music streaming site imeem think it can take on iTunes? For the most part, nearly every streaming song on the site has a download button which links to both iTunes and the Amazon MP3 store. But it is quietly testing its own music download store which bypasses iTunes and Amazon and sells MP3s directly. For instance, this is the case with some Sub Pop artists, such as Iron and Wine and The Shins. When you hit the download button on songs for those artists, a window pops up showing the album where that song came from with with the option to download the entire album or any individual song for $0.99 (see screenshot above). You can then pay imeem directly by credit card or Paypal and download the song to your computer.

This imeem music store is obviously an experiment. The vast majority of songs still direct users to iTunes or Amazon for downloads, and you’d expect imeem to provide its own lightweight desktop client to manage and store the downloads, or at least place them directly into iTunes instead of a download folder on your computer. But it is also likely a sign of things to come. After nearly running out of cash because it was paying out too much money to the music labels for streaming rights, imeem went through a sever recapitalization. Warner Music ended up taking a $20 million hit to write down its investment and bad debt from imeem. Instead of walking away, however, Warner renegotiated its deal with imeem to get new shares without putting in any new money.

Imeem is doing everything it can right now to cut costs and find new sources of revenue. Last week, it announced it will soon stop storing user’s photos and videos, an expensive remnant from its earlier strategy to compete with Facebook and MySpace as a larger social network. Now, imeem is focusing on being a music site. It was one of the first sites to strike streaming deals with all the major labels and for the most part has renegotiated those on more favorable terms. Its iPhone and Android apps, which also offer streaming music, are taking off and driving even more downloads.

And that’s where the imeem music store comes in. Currently, imeem gets a dinky 5 percent affiliate fee for every song its users buy from iTunes or Amazon. As part of its renegotiations with the music labels, it is getting download rights along with its streaming rights I’ve been able to confirm. Instead of getting a few pennies for each song from iTunes and Amazon, imeem can capture the roughly $0.30 per song that doesn’t go to the labels. What is more likely, however, is that it is giving the labels more than the 70 percent cut they get from Apple. Even if it splits its share with the labels and takes only $0.15 per song, imeem still stands to triple its download revenue. Add in ringtone sales and its existing advertising revenues (imeem attracted 25 million unique visitors worldwide in May, according to comScore), and imeem might just have a chance to survive. But if it does survive, it probably won’t be because of its advertising model alone. It will be because the free music is driving enough sales of actual music downloads.

Update: Imeem has confirmed that it is planning to roll out this store more broadly, but says that when it does it will continue to offer iTunes and Amazon downloads as an option.

Below are screenshots of the new post-payment window for songs imeem sells itself and the regular affiliate link window which still pops up for most downlods:

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Imeem Mobile for the iPhone, which we were the first to report on back in May right before it launched, already accounts for 1/3 of Imeem’s mobile users, we’re told. It’s been consistently in the top 5 music apps and near the top 50 overall in the App Store since then. But does that mean that it’s better than the Android version? No, in fact, it’s worse for one reason: It can’t run in the background.

That of course, isn’t Imeem’s fault. Rival Pandora suffers from the same problem because Apple will not allow these apps to stay open while you do other things on your phone, or put its screen to sleep. That may change eventually, but it seems likely that this isn’t happening anytime soon. So, for now, Imeem has decided to continue this fully two-pronged approach to the mobile app world: Android and iPhone.

On one hand it now has the sexy iPhone app, which gives them access to all those iPhone users. On the other hand, it has its fully-functional Android app, which offers much higher engagement. In fact, Android listening session lengths are more than twice as long as they are on the iPhone, Imeem CEO Dalton Caldwell tells us. And the Android platform offers another advantage in that Imeem knows that its app is now on 2 out of every 3 Android phones out there right now. That’s pretty crazy. And 1/3 of the users who install the mobile version of Imeem are completely new to the service.

Of course, all of these things are just fairly inconsequential stats if the service isn’t monetizing them in some way. There has been of a lot of speculation about Imeem’s future, after reports surfaced that some of the major music labels which had been backing it, were not seeing returns on their investment and were backing out. Warner Music was the one in particular that was unhappy. But reports today indicate that they’re back in the mix after renegotiating some kind of deal with Imeem. Caldwell wouldn’t comment on that, but we’ve heard that Warner is back in as well. This follows Imeem raising more money to continue onward last month.

In terms of monetization, Caldwell said that Imeem beat their Q2 goal for ad sales, and that they’re particularly excited about the mobile ad numbers they’re seeing. And there’s apparently a growing interest in cross-platform ad buys, from advertisers who want access to the site, the mobile apps, audio ads, and the widgets that Imeem makes, all in one package.

Pandora told us last month that it had been seeing some great numbers with regards to music downloads being driven by their app. Caldwell sounds less enthusiastic about those, but said the click-through rates are always good in that area because there’s such a high intention rate when it comes to buying music through the app.

So with a million mobile installs and a firm commitment to the iPhone and Android platforms, what’s next for Imeem in the mobile space? Well, the company is taking a wait-and-see approach. When asked about the hot phone of choice right now, the Palm Pre, Caldwell is cautious. “We’ve been very judicious in our use of resources,” he says. But he notes that they are watching the Pre closesly (Pandora was one of the phone’s launch partners), and sounds much more interested in that platform than any of the other ones out there not named the iPhone or Andorid. “They [the other platforms] don’t have a great distribution model. It’s a total pain to install anything on the BlackBerry.”

Instead of an expansion to another platform, we’ll have to make due with an update to the Imeem Android app, which is due shortly.

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The blog post, titled ‘Navigating the storm’, speaks volumes about Yasuda’s sentiments on the music industry in general, even if they are not all that outspoken. A short excerpt:

The challenges involved in running a start-up in the music space are immense. To be honest it’s completely nuts, but we are trying to navigate our way through the perfect storm: a struggling music industry, a global economic meltdown, and a fundamental shift in the way people relate to one another and share their appreciation for music.

The biggest change mentioned in the post is the following: the music Blip.fm will be streaming from now on will primarily be coming from Imeem, which means there will be some limitations to what can be streamed henceforth. This decision affects Blip.fm users not located in the U.S. in a big way, which basically means about 80% of its current user base is now using a trimmed down version of the service.

The other changes are:

* Adding urls to public mp3s will be limited to legitimate bands and labels approved in our systems
* The embeddable widget will still show blip messages, but won’t play the music in most cases.
* Where applicable, old blips will be replaced with content from the imeem catalog, but anything that doesn’t match will temporarily cease to function. We plan to add tools to allow you to correct any false matches and find replacements for unavailable tracks.
* We plan to add a preference to skip 30 second clips.
* Additional media content will be available as it is sourced via new partnerships.

Yasuda says he can’t go into detail about why the changes were made exactly, so we can only speculate about it at this point. The big elephant in the room here is that most of Blip.fm’ music catalog was being sourced from SeeqPod, and by now we know what kind of trouble that company is in (although they might still be saved by Microsoft). He does mention that the startup has engaged in talks with ‘lawyers, artists, people from the labels and aggregators’ besides software developers, publishing companies etc. to ensure the service stays alive and can keep adding features.

I’ve contacted the Blip.fm team for more information and will update this post if and when they get back to me.

Looking at their Compete stats (which usually underestimate actual traffic for websites), Blip.fm actually appears to have been growing nicely the past few months. Compete pegged monthly unique visitors going to the service at about half a million in April.

We should also note Fuzz, the initial company behind the Blip.fm service for which they raised an undisclosed amount of angel funding back in February 2008, recently sent its music destination site / social network Fuzz.com to the deadpool to focus completely on Blip.fm, making the whole situation extra painful for the 4-headed team.

Too soon to put Blip.fm on deadpool watch, but beyond a doubt its future is now less bright than it was before.

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The Imeem app has already been submitted for App Store approval and could be released any day, we’re hearing from a reliable source. In terms of what it will offer, you can probably expect it to be about the same as the Android version. That means access to Imeem’s library of music and perhaps more importantly, access to your own collection of songs from the cloud, if you use Imeem’s upload service to put your music on their servers.

Of course, you have to pay for that. But if you’re willing to shell out $99 a year for their most premium plan, it means you can access 20,000 of your songs from your iPhone from anywhere (there are lower-cost version with less storage as well).That’s around 80GB of music, obviously a lot more than an iPhone or iPod touch can hold. But one tricky thing about this on the iPhone is its close ties with iTunes, which means that many of its users probably have some DRM-protected music, which won’t work over Imeem’s streaming service. But I assume the new iTunes Plus, DRM-free variety (which the entire iTunes store was recently converted to) will.

And I’m sure you’ll be able to buy new music you hear on the Imeem app with one click that takes you to the iTunes store on the iPhone. This has been working out pretty well for Pandora.

Cloud-based streaming of music makes a lot of sense. It gives you a single place to access your music from anywhere, without taking up valuable space on your devices. Lala is another service doing this with a still unreleased iPhone app that we got an early look at. It makes so much sense, in fact, that I suspect Apple will eventually get into this game as well. It almost has to with HD movies and television shows at some point because most people simply do not have enough storage space even on home systems to buy that content to their heart’s content — which of course, Apple would love. Naturally, Apple would want to have an option to pull your music off of the cloud to take on trips where you don’t have web access as well — that’s something that won’t work so easily with Imeem’s solution.

Imeem’s iPhone application will undoubtedly have another major downside that the Android version does not: The inability to run in the background. That’s one of the killer features of the Android version — I can turn it on and leave it on while I do something else. Compare this to Pandora on the iPhone which shuts off as soon as you exit it. Seeing as Apple doesn’t allow third-party apps to run in the background, that will be the case with Imeem too.

Still, given the range of music Imeem offers and this cloud-based option, I’m definitely looking forward to this iPhone app. The Android version actually won the Crunchie this year for Best Mobile Application — even beating out Pandora for the iPhone. Look for the iPhone version soon in the App Store.

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How bad are things getting for music streaming startups? We knew that imeem was on the verge of shutting down before getting a last-minute cash infusion from some of its investors, but an SEC filing from Warner Music adds some more details about exactly how dire imeem’s situation is, as well as that of another music startup, Lala.

Warner Music Group, an investor in both imeem and Lala, thinks they are no longer worth much, if anything at all. It wrote down its entire investment in imeem and half of its investment in Lala in the most recent quarter. As detailed in its 10Q report filed with the SEC, it took a $16 million charge to write down its investment in imeem, and an $11 million charge to write down part of its investment in Lala, plus it took another $4 million charge to write down a bad debt from imeem which it never expects to collect. That comes to a total of $33 million down the digital music drain.

But the reason imeem is in such dire financial straits is because of the crushing payments to music labels it has to dole out for every song streamed from its site. It has renegotiated its deals with the labels to pay on a revenue-per-user basis instead of per stream, and Warner’s filing hints at why it had to do so. It appears that imeem had simply stopped paying those per-stream fees, which would explain the $4 million in bad debt. And that was just for one quarter for one label. No wonder imeem nearly ran out of cash. It had to stop paying its bills.

According to comScore, imeem’s U.S. traffic has come down about 25 percent off its peak last July. As of March, 2009 it was at 5.3 million unique visitors in the U.S. and 24 million worldwide. In the perverse world of music streaming licensing, the bigger your audience, the more money you lose.

Update: When imeem raised rescue money from investors, it had to recapitalize. If Warner pitched in, which presumably it did, then it would have had to write down its old investment anyway. If that is the case, then maybe it doesn’t think that imeem is completely worthless, it is just marking its investment to market. With a recap that means marking it down to zero. But any additional investment after the recap wouldn’t be reflected in that write-down. And since you can still stream Warner artists on imeem, it stands to reason that Warner has not entirely abandoned the startup. Where there is music, there is hope.

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The point is, they aren’t going to be closing down any time soon, say sources close to the company. And for a free music streaming company, that’s really saying something.

Weeks ago they were on the ropes, near the end of cash and with crushing venture debt obligations threatening to shut them down entirely. No one was interested in buying them or putting in more cash with big music label royalty commitments already past due.

Then we heard whispers that they may have a plan to build a profitable business. And apparently they’ve convinced at least their current investors to back that plan with more capital.

CNET’s Greg Sandoval reported earlier today that the company may have raised new funding (he used the “dodged a bullet” idiom, by the way). We’ve confirmed that the company has raised a new round of financing from existing investors. There’s no word if Sequoia has put new money in, and we’ve been told the amount raised is small, likely in the single digit millions. But it allows iMeem to make payroll and keep the servers running.

More importantly, the company has forged new deals with the music labels, we’ve heard, that help it break away from the crushing pay-per-stream model that’s impossible to cover with advertising.

Imeem has renegotiated its label deals to allow it to focus more on a revenue per user goal than a pay per stream. Revenues from downloads and ringtones will offset streaming rates, which moves the relationship much closer to a revenue share than a pure licensing deal. It may just give iMeem the room it needs to get to sustainability.

The company is also planning on terminating its download deals with Amazon and iTunes, we’ve heard. Downloads will be sold directly by iMeem itself through Snocap, which it acquired last year. Those download sales are very low margin, but it takes money previously being sent to Amazon or Apple and gives it directly to the labels to offset streaming costs.

At least that’s what we’re hearing. Imeem as usual won’t comment. But there’s a chance this company may still be around for the foreseeable future. And they may have redefined how streaming deals are done across the industry.

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Not only is Goom clearly trying to play the popular music card with a website littered with the likes of Coldplay, Kanye West, Beyonce and Britney Spears, but it promises to have “passionate programmers” and DJs. I don’t know about you, but I had two core reasons that I stopped listening to traditional radtio long ago: Crap music, and DJs. Goom, apparently, sees those as strong suits.

Not that there’s anything necessarily wrong with that. Pop music got that name for a reason, it’s popular. And popularity on the web means users. And users means people you can serve ads to and get paid — which is Goom’s business model for the time being, according to VentureBeat.

To be fair, you can also tailor your own stations based around your musical tastes, just as you do on the aforementioned Pandora. And you can upload your own music to the service to stream yourself from anywhere, just as you can with imeem. And the services promises high quality with its proprietary HD sound. But Goom is clearly putting resources into hiring “experienced” DJs, conducting interviews and even dishing out news (presumably about music). And it has raised a $16 million round of funding from Wellington Partners Venture Capital, Elaia Partners and Partech International to help it do all of that.

The service features the tagline “redefining radio for the digital generation,” but I wonder if the other services that already exist in the field haven’t already done that? Instead, Goom looks to be a way for the digital generation to rediscover traditional radio. And at a time when web radio is struggling to monetize against high streaming royalty fees, is bringing in DJs and programmers really the best use of funding?

You can sign up to be a part of Goom’s beta launch on its site.

Update: Goom contacted us to let us know that one of the key advantages it feels it has over its competitors is its solid executive team, which consists of a team with more than 20 years of experience inside both the realms of radio and technology. This includes CEO Rob Williams who previously was the President and Market Manager for Clear Channel New York. A fair point, though that doesn’t change my opinion about how the product is being sold to the public.

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TunesBag doesn’t bring anything truly innovative to the table, but it’s always nice to know there are alternatives available, and tunesBag is a strong contender that too often remains under the radar, even if you need an invite code to get in for now.

Today, the company is hoping to change that with the release of an Adobe AIR-powered application (hence available for Windows, Mac and Linux) that brings some of its goodness to the desktop. You’ll still need an invitation code to access the service for now, but hopefully they will open up to the masses soon. We’re trying to get the company to release a number of invite codes for our readers. Update: TunesBag came through with 500 invites. Sign up here or use the code TECHCRUNCH.

The app currently only lets you play tunes from your uploaded music library as well as custom or public playlists from your desktop, and is pretty basic in that sense – it doesn’t even have a volume control option. You can buy music tracks directly from within the tool (through Amazon or iTunes) and share them with your friends on other social networks like Facebook etc., but that’s currently pretty much all there is to it. Most likely, there will be additional features in the future, hopefully mimicking the way the web application currently works (including recommendations, native upload of iTunes and Winamp library, and so on).

For now, check out the web service first and install the desktop application if you like the way it works, and let us know how it goes for both.

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Music insiders are saying a shutdown of the company is imminent after a failed attempt to sell the company or raise more cash. A spokesperson flatly denied the shutdown rumors today, but confirmed that the company layed off staff last week (six people from a staff of around 70). He wouldn’t comment on funding or sale rumors, although plenty of potential buyers tell us they’ve been pitched to buy the company over the last year.

The “problem” with Imeem, like all streaming music services, is that they have to pay a flat rate per stream to the music labels that’s hard to cover with advertising alone. Some companies pay as much as $0.01 per stream, which doesn’t seem like a lot – but at volume it’s crushing, particularly in a down advertising market.

One source tells us that Imeem owes the labels as much as $30 million to date with no hope of paying any of it. Imeem says that is “extremely innacurate,” but confirms that they are playing “in excess of a billion songs and videos per month.”

Online music is a tricky business, where rabid users can actually quickly put you out of business simply by listening to too much music. Imeem says they’re refocusing their efforts on additional revenue streams, such as paid downloads, tickets and ring tones. One new feature allows users to download entire playlists for a fee with the click of the button, which is sure to be popular. The big question is whether that will be enough to make the business even remotely profitable.

This is one tough company that has reinvented itself more than once to find a way to profitability and success. I wouldn’t necessarily bet against them. But the clock is ticking on this startup.

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The company says the application should be available here, but I’m not seeing anything there yet so maybe we should just be patient until they get around to effectively have the app up for download on Android Market. (It’s also nowhere to be found when you actually search from the G1).

Update: it’s available from the phone now.
Update 2: app is listed online now too.

First impressions: music quality is fine but not staggering, the streaming speed is ok, the tagging process is seamless and it’s really cool to discover similar artists when you’re listening to a song from your mobile phone. Also, you get to purchase songs straight away via the Amazon MP3 store on Android.

The application enables users to access their Last.fm profile and millions of streaming tracks on Android-powered phones, and supports ‘background playback’ so you can listen to music while you access other programs. Last.fm has been offering an application for the iPhone / iPod Touch for about 6 months now with the same feature set apart from the background playback functionality.

Last.fm, which was acquired by CBS in May 2007 for $280 million, was recently forced to reduce its headcount by 20 percent but continues to report impressive growth figures.

One of their competitors, social music network Imeem, has been available on the Android platform since October 2008 (get it here), and their mobile application also took home the award for Best Mobile Application at the recent Crunchies ceremony. Now all we need is an Android application for Pandora and the race is on.

It’s also worth noting that we could find 3 unofficial Last.fm-related apps on the Android platform (Last.fm: Android Edition, Last.fm Player and Last.fm Client) although these generally received poor ratings and reviews, so there was an apparent need for a better, official one.

Co-Editor’s Update (Erck Schonfeld): I’ve been testing out the Last.fm app today. It works great, and I especially like the ability to create stations by tags or artist. But the stream just doesn’t sound as good as imeem’s, even though Last.fm is streaming at 128 kb/sec and imeem is streaming at 64 kb/sec. The reason for this is that imeem streams in AAC format, whereas Last.fm streams in MP3 format. As a result, the imeem app sounds twice as good at half the bit rate. Last.fm should consider switching to AAC as well.

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MOG has a history of doing cool new things around music. The service today includes a media player plugin that records and analyzes your music habits, a website that has a dedicated page for every artist, album and song with user generated reviews and posts, and an advertising network that provides revenue for 300 top music blogs. Users can also stream music via an excellent front end to Rhapsody.

All of that brings about 5 million unique visitors a month to their network, and the company says they should bring in about $5 million in revenue in 2009.

Now they’ve created a new music streaming product that breaks away from Rhapsody and its limitations. Like competitor ilike, which also uses Rhapsody, users can only stream 25 songs per month for free. That doesn’t compete well with free streaming services like MySpace Music, iMeem, Last.fm and others.

The new service, dubbed Mog 3.0 internally, is a fully free music streaming service that lets users play whatever songs they like on demand. The user interface is as good or better than LaLa, a service that we love despite the fact that streaming isn’t completely free. Founder David Hyman and VP Product T Jay Fowler gave me a demo of Mog 3.0 earlier today.

The service combines the ease of use of LaLa with free, which is enough to get our attention. But it also has a recommendation service that rivals Pandora when it comes to discovering new music.

The interface is genius. Users search or browse songs, artists or albums and then start listening to the music. More songs from that artist are suggested and added to the results as you play the songs. And if you move the slider to the right (see image to right), related music is added as well. That lets the user decide if they want a playlist-driven on demand music experience, or to change things up and add Pandora-style related music to the mix.

It doesn’t stop there. Users can also create playlists with the best tool on the market – it’s easier to create and share playlists than even Project Playlist offers, and users can associate a name, description and image with each playlist as well.

MOG plans to make other changes to the service as well, including adding streaming music to content pages, and creating user profiles that highlight the music you listen to and like. It brings in the best social aspects of Last.fm.

The product is compelling.

But it will quite possibly never launch.

MOG has label deals with Sony BMG and Universal locked up. They’ll provide streaming music rights for free in exchange for a revenue share. But Warner and EMI remain on the sidelines, and MOG says they won’t launch unless and untill they have all four major labels under agreement.

I, for one, really hope to see MOG 3.0 launch sometime soon. And if the last two labels don’t jump on board, MySpace should strongly consider buying MOG. MySpace has label deals locked up but their product continues to have unacceptable technical glitches. The music player is very slow to load and songs have an annoying tendency to skip during playback. Perhaps the MOG team can put that right for them.

More screen shots below – top image is the playlist tool, below that is a user profile page.

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What were the top social media sites of 2008? ComScore came out with its worldwide traffic stats for November a few days ago (so these don’t include December). They are a mix of social networks and blogging platforms. Blogger, the orange line in the chart above, still rules the roost with an estimated 222 million unique worldwide visitors in November (up 44 percent from November, 2007). Facebook, the blue line, is on pace to pass it soon with 200 million unique visitors (up 116 percent). (Note, though, that this is more than the 140 million active users Facebook itself reports—go figure). MySpace is pretty steady at 126 million uniques. Wordpress is a close fourth and gaining with 114 million (up 68 percent). And Windows Live Spaces is down 22 percent to 87 million uniques.

ComScore keeps a list of what it calls “social networking” sites, but these include blogging platforms and other social media sites as well. While the audience for blogs is still showing healthy growth overall, Facebook stands out as the social gorilla taking share from not only other social networks but blogs and other social media as well.

Below are the top 20 sites on comScore’s social networking list. It is really more of a social media site list, which is what I’m renaming it for this post. It is not definitive, but it gives a good lay of the land. (Here is a similar ranking from 2007). Note on this list the stubborn persistence of Yahoo’s Geocities at No. 6, the rise of Yahoo’s Flickr at No. 7, Six Apart at No. 10, and the presences of Chinese sites like Baidu Space and 56.com. The real surprise, though, is document-sharing site Scribd at No. 16, with nearly 24 million worldwide uniques.

Top Social Media Sites (ranked by unique worldwide visitors November, 2008; comScore)

1. Blogger (222 million)
2. Facebook (200 million)
3. MySpace (126 million)
4. Wordpress (114 million)
5. Windows Live Spaces (87 million)
6. Yahoo Geocities (69 million)
7. Flickr (64 million)
8. hi5 (58 million)
9. Orkut (46 million)
10. Six Apart (46 million)
11. Baidu Space (40 million)
12. Friendster (31 million)
13. 56.com (29 million)
14. Webs.com (24 million)
15. Bebo (24 million)
16. Scribd (23 million)
17. Lycos Tripod (23 million)
18. Tagged (22 million)
19. imeem (22 million)
20. Netlog (21 million)

Here’s a screenshot of the actual data (as you can see, I rounded above):

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Last night we released the finalist names for the Crunchies Awards. Vote here for who you think should win. We’ve set up a site that is pretty self-explanatory, with all of the names of each finalist for every category, along with links to their Websites and Crunchbase profiles where you can learn more about each one before voting. The Crunchies represents the best the Web had to offer in 2008, and you get to help choose who will win. Below is a voter’s guide for two of the major categories to get you started.

Best Overall
Amazon Web Services
Facebook
Android
hulu
Twitter

Best Overall is the big prize. Amazon Web Services makes it as a finalist this year because of the sheer number of startups that are built on top of its cloud computing infrastructure. Facebook won last year, but makes a return as a nominee due to popular demand. Facebook continued to gain massive mainstream adoption in 2008 (with 140 million members now) and launched some major initiatives to extend its social computing platform beyond its site, most notably Facebook Connect (which by itself is a finalist for Best Technology Innovation, going up against Google Friend Connect). But does Facebook deserve to win again?

This was also the year that Google launched its Android phone, bringing the unadulterated Web to mobile devices beyond the iPhone (which won Best Gadget last year for its 2G version). Hulu emerged as a rarity in the Web video world, a popular site with a serious revenue model. And Twitter broke out as the service everyone can’t stop talking (or Tweeting) about. As with any new communication technology, people keep finding novel ways to use Twitter’s public instant-messaging service.

Best New Startup of 2008
Dropbox
FriendFeed
GoodGuide
Tapulous
Topspin Media
Yammer

This category recognizes the best startup to launch publicly in 2008. Dropbox makes it dead-simple to transfer files between computers. It creates a Dropbox folder on your computer that you just drag files into, and then they become available to anyone else with access to that folder. FriendFeed sparked the whole lifestreaming movement this year, and kept adding improvements that makes it easier to filter the Web through the actions of everyone in your various social networks. GoodGuide has created an impressive product database (and iPhone app) that tells you at a glance how green or safe that baby cream or toy is that you just put in your shopping cart.

Tapulous created some of the most popular iPhone apps with Tap Tap Revenge, Tap Tap Dance, and Twinkle (a Twitter client, of course), despite some internal turmoil. Topspin Media, founded by former Yahoo Music chief Ian Rogers, is trying to help bring the music industry into the 21st Century by embracing the Internet as a marketing vehicle instead of a necessary evil. And Yammer is an enterprise version of Twitter which won the top prize at this year’s TechCrunch50.

Here are the finalists for some of the other categories. To see a complete list, go to the Crunchies site and vote for who you think should win. Voting ends January 5.

Best Technology Innovation
Facebook Connect
Google Friend Connect
Google Chrome
Windows Live Mesh
Swype
Yahoo BOSS

Best New Gadget
Android G1
Asus 1000 Netbook Computer
Flip MinoHD video camera
iPhone 3G
SlingCatcher

Best App
Get Satisfaction
Google Reader
Minted
meebo
MySpace Music
Yelp

Best Mobile App
Google Mobile (for iPhone)
Imeem Mobile (for Android)
Pandora Radio (for iPhone)
rolando (for iPhone)
ShopSavvy (for Android)
Ocarina (for iPhone)

Most Likely To Make the World a Better Place
Akoha
Better Place
Causes
CO2Stats
GoodGuide
Kiva

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But they’re also in a very vulnerable position right now. Litigation with the other three labels continues, and they’ve been banned from both MySpace and Facebook after those labels threatened to sue them, too. Embedding music playlists on social networks is the key to Project Playlist’s continued growth, and that door has been closed.

And Project Playlist’s competitors have certainly noticed.

Legitimate music startups like LaLa and Imeem, who have deals with the major labels and also let users embed playlists onto the major social networks, are working on tools, we’ve heard, that will let Playlist users port their music lists over to the new services and embed them onto Facebook and MySpace. LaLa confirmed to me that they are working on such a tool.

If I were these services I’d try to cut an advertising deal with Facebook and MySpace that targets just those users that used to have Project Playlist playlists embedded on their profiles. I imagine they’d get a very nice conversion rate.

Users are fickle, don’t expect them to just wait things out as Project Playlist scrambles to get their label litigation settled and deals finalized. If those users see an easy way to get their favorite songs back on their profile, they’ll take it. And they may never go back to Project Playlist.

Update: Mixaloo says they’ve already released a tool that does this, see comments below.

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Just in via Twitter: Pandora has registered its 20 millionth user. The three-year old music streaming service is trying to hold its own despite tough economics and recent layoffs.

Its music-recommendation engine pumps out personalized radio stations over the Web, and its iPhone app remains one the top free apps on iTunes (currently No. 21).

How many of those 20 million registered users are active? Most of its listeners are in the U.S. According to comScore, Pandora had 5 million unique U.S. visitors in November, more than CBS-owned Last.fm (2.8 million) and close to Imeem (5.5 million). (MySpace Music, in contrast, had 17. 8 million). Here is a Google Trends chart showing a similar relationship.

Update: According to the company, 40 percent of its registered users, or 8 million, have been active in the past 90 days.

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Today, CBS Interactive is laying off people across several of its properties, I’ve confirmed with the company. CBS is not saying which divisions or how many people are affected. It is positioning the layoffs as part of the integration process it began six months ago when it bought CNET for $1.8 billion. But it is not just the CNET businesses that are being cut.

I’ve also confirmed that earlier today employees at social music site Last.FM were let go. CBS bought Last.fm in 2007 for $280 million. One source puts the number of layoffs at as many as 40 people, mostly from LAst.FM’s London HQ, which has a total staff of 95. A spokesperson for CBS Interactive says that number is inaccurate on the high side, but won’t provide the correct number. In any case, it is likely a small fraction of the overall number of employees being laid off across CBS Interactive. Update: CBS says the number of Last.fm layoffs is less than 20, which would put it at about 20 percent.

Last.fm never really became a big money maker from what I can gather, and all of those engineers and other staff members are not cheap. Even after a redesign last July, growth has been flat. According to comScore, Last.fm had 9.2 million global unique visitors in October, a 6 percent increase from July. Imeem is still much more popular, with 22.1 million global visitors. And in the U.S., even Pandora has a bigger audience (4.97 million uniques in November, versus 2.75 million, see chart below).

If you know which other CBS Interactive divisions are going through layoffs today or the total number of layoffs, leave us a tip and we will add it to our Layoff Tracker. Update 2: There were also layoffs at CBS Sports where, a tipster who is a former employee tells us, “the entire accounting department” was lost, as well as jobs in Database Applications and Data Warehouse .

The Last.fm staff learned about the layoffs a little more than an hour ago. Below is a screenshot from one of their friends, showing their reaction on Facebook. That first status message is in Swedish and says, “better start planning for the future.” Update 3: Matt Hillman says that his status message below was not related to the layoffs.

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Pop sensation-turned-tabloid punching bag Britney Spears is ready for her comeback. Britney has just released her new album Circus exclusively on imeem, where you can stream the album in its entirety for free (you’ll also be able to embed the album playlist anywhere you’d like). The downloadable/physical version of the album won’t be available until December 2nd, but you can currently pre-order it through imeem and a number of other stores.

The exclusive album launch marks a big win for Imeem, which also recently launched Lil Wayne’s latest mixtape, Dedication 3. The site seems to be in a heated battle for album launches with MySpace Music, which has also launched a number of high profile albums in the last few months, including Guns N’ Roses’ first album in 17 years, Beyonce, The Cure, Oasis, and a number of others. imeem’s Matt Graves says that one advantage imeem has over MySpace Music is its embeddable playlists, which makes it easier for albums to go viral as they get embedded on blogs across the web.

As with every major album release these days, Circus was leaked and has been available on a number of pirate sites since at least last week (some albums have been beaten to the punch by months, so it could be worse). These leaks do take some of the luster away from album launches, but there isn’t much the record labels can do beyond changing their distribution methods or bumping up release dates when there is a leak (which is what happened to Britney’s last album).

In other news the pop princess has also managed to lay claim to the Twitter account BritneySpears, in place of her old account therealbritney. Since joining us on Twitter in October Britney has racked up over 9000 followers after a meager 42 updates.

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This has been a brutal month or so for tech layoffs. According to our Layoff Tracker, there have been 19,683 job eliminations at tech companies announced since mid-September, and we’re not even counting the 24,600 people at Hewlett-Packard who are being eliminated as a result of its merger with EDS.

But only five big companies make up more than 90 percent of the layoffs: Xerox (3,000), Dell (8,900), Yahoo (1,500), eBay (1,500), and German chipmaker Qimonda (3,000). The other 33 companies are mostly startups, and collectively account for 1,683 layoffs. Although three more companies (Sony Ericsson, Nvidia, and TicketMaster) account for an additional 1,110 job losses.

After stripping those out, you get closer to a pure number of layoffs at tech startups: 573

That is the equivalent of about 57 startups with ten people each. And those are just the ones that we or other news outlets have been able to confirm. Our list of tips is much longer than that and we are working through it to confirm as many as we can. For instance, Cake Financial has laid off 30 percent of its staff, or 6 people.

Another company with unreported layoffs earlier this week was Meraki, which I’ve confirmed let go 20 percent of its staff (10 people). That makes Meraki the third Sequoia-backed company to announce layoffs this week. (The other two were Mahalo and imeem). Sequoia urged all of its portfolio companies to make cut-backs earlier this month.

At least most of these startups are already done with their layoffs, unlike Yahoo which announced a 10 percent cut is coming but won’t say who exactly is losing their jobs for another few weeks. Layoffs are bad enough, but don’t prolong the misery.

This past week alone, tech companies have laid off 13,809 people:

Company–––––––––Layoffs

Xerox————3,000
Daptiv————–21
Haute Secure———3
Cake Financial——–6
Mercent————-6
Dell————-8,900
imeem————-20
Mahalo————-6
TicketMaster——300
Eons—————8
Veoh————–15
Yahoo———-1,500
Wikia—————3
Meraki————-10
Break.com———-11

Total———-13,809

If you know of any layoffs at a tech company, please submit a tip with the name of the company and number of layoffs. If it’s been covered, also send a link to the blog post or news article.

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PR representative Matt Graves gave a now-familiar explanation for the cuts:

Given the current economic climate, we decided to be proactive in cutting costs – before we needed to – for the long-term benefit of the business.

The company did not confirm reports that Montgomery & Co. has been hired to find it a buyer. That wouldn’t be terribly surprising, however, given the direction Imeem’s US traffic has been heading:

Traffic appears to have peaked at 7 million unique visitors in July only to fall precipitously to 4.9 million uniques in September. This puts Imeem back to where it stood in April traffic-wise.

International traffic has also taken a dip, although not as dramatically, with about 3 million uniques lost between July and August alone:

The reasons for Imeem’s cuts may be mixed: girding oneself for bleak economic conditions, readjusting performance expectations, and (as Paid Content suggests) shifting focus away from technical development and towards marketing. Whatever the reasons, Imeem’s surviving staff members have their work cut out for them; the free music streaming space is getting hot with competition from MySpace, iLike, Lala, and possibly Facebook as well.

Imeem, a Sequoia Company, has been added to our ongoing Layoff Tracker.

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