Hong Kong music portal Gogo. com is giving up recording new acts and will turn towards more lucrative remix and marketing work for larger labels and corporate sponsors, according to industry sources.
The company, which started about three years ago with the intention of using the Internet to audition bands as well as distribute their music, has won applause in the music industry for being a risk-taking label willing to sign unknown acts.
However, the downturn in the fortunes of dotcom companies and recent stagnation in the music business, online and offline, have forced Gogo to shelve many of its electronic commerce and music-making plans.
Sources close to Gogo are saying the company has effectively abandoned any plans to launch new acts.
'Technically, Gogo is not closing. But they are moving away from their original business model of signing artists and releasing records, mainly because the industry is in the dumps right now and they were not making any money,' one source said.
Gogo's three signed acts included local dance music group Digital Cutup Lounge and Japan's Monaural Voice.