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DeNA loses its groove, shuts down music streaming service

DeNA Groovy shuts down

It appears that DeNA’s (TYO:2432) music streaming app has hit a Spotify of trouble. Sorry, I mean a spot of trouble. DeNA has announced that Groovy, which launched in March last year, is shutting down.

DeNA has been quiet about Groovy since its launch, which is usually not a good sign. DeNA has been struggling with its core social gaming business – hit by new rivals like the gaming element within Line messaging app – and so it’s trying to diversify with other web products like Groovy.

However, DeNA is having more luck with one of its other new apps. The Bridge – which also spotted the Groovy closure – notes that the company’s Manga Box reader app has just exceeded three million downloads, though it’s not clear how many active users it has. The fun app launched in December.

DeNA’s Groovy had plenty of competition in the music streaming sector in Japan, up against the likes of KKbox, and Recochoku.

(Source: The Bridge)

(Editing by Josh Horwitz)

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