At present, Last.fm has a lot of difficulty generating a profit. Possibly because it no longer serves a purpose aside from logging what its users are listening to. It’s no longer a catalyst for discussions and events, given that there’s already Facebook and Songkick; nor is there need for a personalized radio thanks to algorithm-driven recommendations from various streaming services. In the end, the music industry to which Last.fm was a counterpoint no longer had to the power to create renowned musicians from meager local artists, nor direct public tastes: Today, labels only try to acquire, through an artist’s name, a preexisting community of fans that the artist garnered themselves. Last.fm didn’t pay a central role in the changing of this paradigm, maybe because it never understood how to make itself flourish economically. Investing in the concept of a personalized web radio and deciding to charge a fee for it turned out to be an unwise choice in an environment where music was practically becoming free and accessible, through tenuously legal YouTube uploads and the rise to prominence of streaming services.
One way or another, a reasonable chunk of what I listen to ends up scribbling to Last.fm. But I can’t remember the last time it was any use to me—recommending a new artist, matching me with another user, suggesting events—all things it once did fairly frequently.
The article mentions its ill-timed sale to CBS and that is certainly a factor; hindsight tells us there were many more suitable partnerships it could have developed, although it would have required some fairly far-sighted execs to bring about any large success. Spotify was apparently in talks to buy Last.fm before it acquired The Echo Nest, which led directly to the development of their personal recommendation services, such as Disover Weekly and Release Radar, which feature regularly on this site.