Ten months after announcing that it’s shutting down its operations, streaming service Gimme Radio has sold its e-commerce assets to entertainment commerce firm Mainfactor – and has hinted at a relaunch of its streaming platform.
Philadelphia-based Mainfactor has bought Gimme Radio‘s “e-commerce-related sites and assets,” the company announced in a statement on Thursday (December 14).
Gimme Radio launched six years ago, and ran two streaming apps: Gimme Metal for heavy metal fans and Gimme Country for country/Americana fans.
Unlike most other streaming services, Gimme Radio’s music suggestions came not from an algorithm, but from artists themselves, who curated playlists for music fans using the apps.
Among the DJs who hosted shows on the service were Dave Mustaine of Megadeth and Johan Hegg of Swedish death metal outfit Amon Amarth. DJs on the country/Americana side included Brandy Clark and Joshua Hedley.
The idea was “to build a venue where fans of genres outside of mainstream hip hop and pop were not marginalized, but catered to,” Gimme Radio Co-Founder and CEO Tyler Lenane wrote last April.
The platform built a community of 400,000 “superfan music consumers” who, according to Lenane, spent an average of $123 on the platform in 2021, more than double Spotify’s $54, including on tips to artists and subscriptions to the company’s $30-a-month vinyl club.
The platform successfully completed a seven-figure funding round in 2021/22, led by US radio giant iHeartMedia. Wayra X, the venture capital arm of Spanish telecom giant Telefonica, also invested in that round.
“Gimme Radio is the future of music fandom and the creator economy,” Luis Rubio, Head of Wayra X, said at the time.
“I look forward to collaborating with Mike and his team to rejuvenate the Gimme community, marking a significant step toward the eventual relaunch of an enhanced Gimme streaming service in the future.”
Tyler Lenane, Gimme Radio
However, despite the buy-in from prominent media companies, Gimme Radio was unable to complete a hoped-for $5 million funding round earlier this year, and was forced to shut down its apps, Lenane announced in a Medium post in April.
In a statement on Thursday, Lenane expressed confidence that Mainfactor would be able to capitalize on Gimme Radio’s e-commerce infrastructure, and indicated the company was working on relaunching its streaming service.
“When we started Gimme, we aimed to create an online shop resembling a genuine independent record store – an authentic space where music enthusiasts could explore new bands, rediscover forgotten records, and gain access to exclusive collectibles. Undoubtedly, [Mainfactor Founder and CEO] Mike Fiebach and his team at Mainfactor are the right fit to continue this mission,” Lenane said.
“I look forward to collaborating with Mike and his team to rejuvenate the Gimme community, marking a significant step toward the eventual relaunch of an enhanced Gimme streaming service in the future.”
“Tyler Lenane and his team at Gimme Radio built one of the most robust communities of music lovers in the world. By seamlessly blending content and commerce, they provided die-hard fans with constant exclusive access to media and products,” Fiebach added.
“Mainfactor is thrilled to continue Gimme’s mission, delivering a platform for engagement, and unique and limited vinyl records and merchandise to some of the world’s most dedicated music consumers.”
The value of the transaction wasn’t disclosed.
“Tyler Lenane and his team at Gimme Radio built one of the most robust communities of music lovers in the world. By seamlessly blending content and commerce, they provided die-hard fans with constant exclusive access to media and products.”
Mike Fiebach, Mainfactor
Mainfactor describes itself as an “e-commerce-as-a-service and direct-to-consumer acceleration company, specializing in the music and entertainment industry.”
It says it has built, managed and marketed more than 500 e-commerce stores for “some of the world’s largest artists, companies and brands,” including for Run The Jewels and Chris Lake/Black Book Records.
The company is backed by private equity firm Upper90, a New York-based firm that has raised $520 million across four funds, which have made 44 investments so far, according to Crunchbase.Music Business Worldwide