After only one year, Last.fm has shut down their radio subscription service, citing “the music industry’s rapid change” for the decision, likely referencing popular online radio services like Pandora and Spotify.
While the service never really competed with other online radio services, it did have a following in Germany and Canada. Despite this, shutting it down could be the best option in order to focus on their goal of helping people discover new music. In January Spotify announced that users could listen to any music from its website in Spotify, and this partnership will still remain.
Source: The Verge