The main oops here is this is extremely bad PR both for the industry and for the users. Saying 300+ million people just in Europe are not worth your advertising efforts says a lot about your company and also manages to come across as unfairness and 'the rest of us is paying for you to listen' to the end users - I know this is not so, but that is how it sounds for many. Also, they failed to provide a payment method for at least half of their users worldwide. Oops. Sounds that they want to cut costs more than they want to make money.

As pointed out, this also marks the season start for proxy hunting (or switching service), whichever is easier. In any case, that's a decrease in userbase (both paying and non-paying) and we'll see if last.fm can survive that and what other changed will it bring on.