As part of the reorganizations and layoffs announced today, Microsoft has decided to stop developing the MixRadio service it acquired from Nokia. However, the good thing Microsoft is doing is to spin-off MixRadio from Microsoft so that it could operate as independent company. Currently, MixRadio depends on the revenue from the devices pre-loaded with MixRadio. If it becomes an independent company, it should find a new business model to survive in the highly competitive online music streaming industry. Microsoft will continue to focus on developing and maintaining the best operating system for consumers to use music and entertainment with their choice of third-party applications along with their own Xbox Music platform.
Speaking to Musically, Jyrki Rosenberg of MixRadio team said that he has seen very strong interest from investors in the US, Europe and Asia.
“For me personally it’s very exciting. I’ve been meeting with potential investors around the world in the last few weeks. We have very strong interest from investors in the US, Europe and Asia, and we remain open for further discussions,” he said
“The opportunity in this kind of setup is vast, and it’s much greater than what we’ve been able to benefit from today,” said Rosenberg. “I have to say, though, the business relationship we’ve enjoyed with Microsoft’s device group has been tremendous, and we’re privileged to be continuing that relationship.”
He also revealed that MixRadio will maintain strong links, including continuing to preload its app on Lumia Windows Phone devices from Microsoft.
You can signup for Xbox Music here.