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Digital music provider Beyond Oblivion folds before launch - after spending £57 million

Company blames failure on labels and publishers demanding advances

Ambitious digital music company Beyond Oblivion has collapsed before launching its first product.

The company burned through $87 million (£56 million) of funding from investors including News Corp and the Wellcome Foundation since opening in 2008. But its first major service, dubbed Boinc, never saw the light of day.

Boinc was to be a cloud-based music service supported by device manufacturers paying a one-time life-of-device fee alongside micro-royalty per-play payments, which crucially would have been payable whether the original file had been downloaded legally or illegally, according to the Financial Times.

Founder Adam Kidron blamed the failure on demands for advances from labels and publishers, citing the difficulty of "co-ordinating the diversity of the ecosystem".

He said in a statement: "Beyond was always a tremendously grand ambition as the advances required by the record labels and music publishers were substantial, reflecting the breadth of the rights required to create a true digital music one-stop."

The company had initially claimed to be "revolutionizing the digital music industry from the business model to the way people discover and consume music." Boinc had originally been slated to launch in September 2011.

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