Last.fm makes more from its affiliate music deals than it does from advertising, according to the FT.
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One year after the site was bought by CBS for £141m, the US broadcaster plans to up those advertising revenues through what it calls its "great relationships with advertisers and agencies," said CBS Interactive president Quincy Smith. He said those relationships were one of the reasons that Last.fm agreed to the acquisition.
The new design rolled out last week, as we reported, includes space for 150% more advertising alongside more video. Formats being explored include soundtracks, where advertisers can target fans of relevant bands, and another that lets users pick their own advertising soundtrack.
Last.fm also claims that none of its staff has left in the 12 months since the takeover, testament to what they say is the "start-up feel" of the company. Smith described Last.fm as "a case study to encourage the next generation of entrepreneurs" and said he has visited 387 potential acquisition companies in the past 12 months.
• Update: Last.fm's spokesman Christian Ward got in touch after the FT piece was published to say that it is wrong on affiliate deals making more than advertising. What he said was that affiliate sales had exploded, but they didn't overtake ad revenues.
"Advertising is still our main revenue generator, and we're having some great successes - we've just teamed up with Metrodome to promote the re-release of Bruce Weber's Let's Get Lost, for example, with some great exclusive content for Chet Baker fans over at http://www.last.fm/group/chet+baker, and bigger brands like Motorola, Diesel, etc are seeing the benefit of approaching an engaged audience through music."
