/// A $55 Million Silver Lining for Beyond Oblivion’s Backers

January 3, 2012  |  All Things Digital

Last week Beyond Oblivion, an overly ambitious music start-up, shut its doors before it over opened . But things could have been worse for the New York-based company’s investors, who had pledged $87 million for the venture — they only lost $32 million. That’s because the remaining $55 million never got spent, according to sources familiar with the company. That funding was contingent on the start-up hitting certain milestones that were never met. So that’s a bit of good news — or, at least coulda-been-worse news — for Beyond Oblivion’s backers. That list includes Allen & Co., the non-profit Wellcome Trust , and News Corp., which owns this site. Beyond Oblivion’s pitch — a subscription music service that came bundled with hardware — was always a head-scratcher, in large part because an earlier incarnation had already failed , even though it had been backed by Nokia and Universal Music Group. But then again, there aren’t many people that have really cracked digital music, still. If you place Pandora and Spotify in the “jury’s still out” category (Pandora has yet to turn a profit, and Spotify is still in its early stages), then the only companies that really made digital music have been Apple and Amazon — two giants who don’t depend on digital music at all. So my guess is we’ll continue to see other folks like Beyond Oblivion’s Adam Kidron, who was convinced he’d cracked the code. Here’s an interview I conducted with him back in March, when he was still very much an optimist

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A $55 Million Silver Lining for Beyond Oblivion’s Backers

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