Audio book pioneer MediaBay shuts down

PW reports that MediaBay is ceasing operations and liquidating its assets. The company's audio book club, which it offered via mail, was a leader in the audio book market until the firm decided to go digital-only in 2004. Revenue subsequently dried up and it was unable to gain traction as market leader Audible took off.

MediaBay's decision to move from direct mail to online-only seems to be a key factor in its demise. Revenue fell from $45 million in 2002 to $9 million in 2005. (Audible, by contrast, had a top line of $82 million last year, according to PW.) MediaBay was probably a couple years ahead of its time -- and the iPod boom -- with its decision to abandon snail mail. But fierce competition from Audible surely played a well, as well.