It seems to me like this was a missed opportunity for building a new model for audio-based advertising. Something that inserts adverts tailored to the listner (language, country, music choices etc) in between bits of music. However, I don't know Last.fm well enough to know if this would work - I've only used it a couple of times.
From the 'ripping the bandage off' school of PR - and there's a lot of 'owie' in the comments thread. Cringeworthy stuff but ultimately let's hope last.fm's long term viability increases because of the move, and that people get over the shift fast.
And there we have yet another complete communication failure from last.fm.<p>As if they didn't piss of people enough with their previous announcement, they sure as hell didn't pay attention to the feedback they got there and walked right into the same flaming pit once again.<p>With communication skills like this it will be interesting to see how last.fm develops from here on.