Turntable.fm is buzzing. Rightly so.
It’s a neat concept and people are certainly finding it engaging. I encourage you to check it out here. That may come as a surprise and have you thinking, “But you work for a competitor at ex.fm?” I don’t see it that way at all. I use a ton of music services - Rdio, Turntable, Bandcamp, GroopEase, 8tracks, HypeMachine, SoundCloud, TheSixtyOne, We Are Hunted, Last.fm, etc. – and really like them all. And, I’ll be the first in line when Spotify hits the US. There is plenty of room in the music pool. And the water is nice, too.
I never understood why the ‘Tech’ space embraces a winner takes all. It’s stupid. We don’t all drive Fords. There is always room for multiple entrants. Still, the bigger issue here, and this is more of a start-up beef than just a music space beef is that valuations are going though the roof. I mean just absurd levels. It’s not healthy. I don’t write about the tech space much even though I read a lot about it. I’m more of a lurker. Though this one has been bouncing in my head for a while and I just wanted to get it out.
A recent TechCrunch article on Turntable.fm’s possible financing was just the latest of these unsubstantiated valuations. The article is mostly speculative, of course, but there are definitely kernels of truth in there. For instance, I used to think Fred Wilson had an Oreo Poker Tell where he’d tip his hand a bit. Turns out he just has a 'I’m basically telling you here people tell.’ For a few weeks he’s been peppering his Tumblr feed with Turntable.fm tracks. Then a post about meeting someone from across the globe in a Turntable room. Then a few public lobbying posts on his blog about valuations being too high and you can easily connect the dots he made an offer and was worrying he was going to get out bid. Now, Fred knows his shit. He’s knows what the valuation of a company should be. My guess is that the number he and USV floated out there was actually much higher than he even wanted. And yet he still might get beaten by an offer double his. Crazy. (For the record, I’d take Fred and team USV over a boatload of cash any day). But, that’s just how things are in the Tech Space right now. Techies are rock stars. Heck, even Bob Lefsetz is writing about tech companies now since they are so hot (and, of course, in true Lefsetz style jacking their strat for his own gain).
Look, I don’t know Seth, Billy, and the Turntable.fm team. I really wish them well and much success. This is most certainly not an attack on Turntable.fm. Again, I think it’s a great, great concept and believe they may have even tapped into what Chris Dixon’s has written about so well - the next big thing will always start out being dismissed as a “toy.” I’m just a bit worried because I work in this space and well things are moving right past frothy and toward the clown in the corner who’s getting his helium tank ready for all those balloons.