There have been a couple digital music sites that have shut down recently; i.e. Spiral Frog, & Ruckus. Also, iLike is, and soon Imeem, will be with MySpace Music. Also, LastFM is now with CBS.
Now this isn’t to say these digital music sites are all a failure. There are a number of factors, and I believe the economy is a big part of it, not the model itself.
Pandora, Spotify, Grooveshark are still out there, and it’s going to be interesting to see how the Lala acquisition will shake out.
~G
Article courtesy CNET / Media Maverick Blog