Music app

Grooveshark Gets Legitimate With New Music App

Greg Sandoval / CNET

Grooveshark has come up with a new online radio station app that will allow you to create your own personalized radio stations without checking the labels.

Due to its January release, the new Broadcasts app will let you create and access personalized radio stations and text with other users while you listen to your favorite tunes, Grooveshark said on Monday, confirming an update. story from the Wall Street Journal. Designed for iOS and Android users, the app will cost 99 cents per month and be ad-free. Online stations will be created directly by users rather than generated by Grooveshark.

But for Grooveshark, one of the goals of the new app is to provide a service that will take it away from the courts. Grooveshark currently offers websites for PC and mobile devices where users can search and stream an unlimited number of songs produced by major record companies. This service has got the company in trouble after several record companies argued that Grooveshark did not have the rights to download the copyrighted songs.

In September, a New York federal judge ruled that the Grooveshark co-founders had downloaded nearly 6,000 unlicensed songs and that the two men had destroyed evidence of the downloads, the Journal said. Grooveshark has also tried to appeal to mobile users with ios and Android apps for its streaming service, but both apps were removed following complaints from record companies.

So how will Grooveshark avoid legal issues with broadcasts?

Instead of negotiating with each record company separately, Grooveshark will pay government-imposed royalties, the Journal said. This is the same process that Pandora uses to act as a catch-all for all songs that users can legally access.

Of course, Grooveshark also hopes to make money with the app. Grooveshark CEO Sam Tarantino told the Journal that the app is cheap but costs just enough to generate real sales if enough people buy it. Broadcasts could potentially challenge Pandora, especially with the chat feature and the ad-free bonus. But Grooveshark would have a way to catch up because it has around 30 million users, while Pandora has around 77 million.


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