imeem in Too Deep?

If you frequent our music reviews or other music-related stories on this site, then you know we, like many folks, frequent imeem.

But according to TechCrunch, the social media network is having difficulty coming up with money owed to Warner Music Group, the music giant claiming the company owes it about $4 million. Essentially, imeem is supposed to dish out a fee to music labels each time it streams a song from its site. It stopped paying these fees, adding up to the aforementioned sum.

If you figure this is one of many labels, then the total seems quite outlandish. In another TechCrunch story earlier this year, the site reported that a source said the total amount of debt to labels was in the neighborhood of $30 million. The reason it's not paying up? Simply put, it can't. Costs far exceed revenue. But investors stepped up early last week and saved the company, indicating that, seemingly, there is some sort of a plan for the future.

Related links:
Imeem.com
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News: Facebook inching closer into music playback?

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