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Tonos Limping But Still in the Race
By Moses Avalon
(more articles from this author)
2003-08-12
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Reports that the popular independent A&R service is out of business are premature. The company may be on life support, but is still alive. However, members of Tonos who logged on this week were greeted by an apologetic letter from Tonos founder and Grammy Award winning songwriter, Carol Sayer. The greeting states that unless something significant happens soon, Tonos will be closing their "doors" come September. (Shutting down their server would be more accurate.)

But conversations with Tonos CEO, Justin Herz, suggest that spirits are optimistic. "I'm 100% focused on finding the right merger opportunity right now."

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The announcement came as a surprise, because Tonos' track record had begun to outpace their most visible and significant competitor, TAXI (taxi.com).

Unlike TAXI, which has been doing business for a decade and was grounded in a brick and mortar model, Tonos was the product of the dotcom financing era. Considering their debt-load in the first three years of Tonos' life, it's an impressive achievement that they outlived almost all Internet-based business of their ilk and were able to amass a membership equal to that of their well-established competitor.


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