Just after we get news of digital music sales rising the new music industry takes a step back with US outfit iMeem biting the dust.

In trouble and very recently acquired by MySpace Music (owned by Fox Interactive and the major labels) the site was subsequently shut down with all traffic diverted to the new MySpace Music site - so some things in the new music industry haven’t changed - dog eat dog eh?

According to our sources it seems the appetite for big money digital start ups is being replaced by investors still hungry for that ROI but now looking to leaner, smaller and arguably more realistic start ups that aren’t incurring massive operating costs that don’t balance with revenue.

The final deal sees the iMeem 16M monthly users bought for less than $1m so if that traffic (those users) convert a nice little earner for MySpace Music! A little frustrating for those users who had invested time building up play lists but hey - shit happens.

It does indeed.

GYEO