From April 28, the subscription-based feature will be no more as the company changes focus in the face of increasing competition.
The music discovery platform with a social media edge was incredibly innovative when it launched back in 2002 and although it is still one of the most popular services for serious music fans, the company feels it needs to forget everything else and focus on what it thinks it does best.
"Over ten years, our goal has always been to allow people around the world to discover new music with as few limitations or restrictions as possible. However, the music landscape has changed considerably during that time and we've been forced to make some very difficult decisions surrounding our core products and services. In response we've chosen to focus on what we think Last.fm does best: scrobbling, music discovery, and recommendations," said the company in a statement.
The paid subscription streaming service is only available in the UK, the US, Canada and Germany and current users will be able to request a refund.
As for the future, Last.fm will continue to work on "scrobbling," the company's name for its technology for learning musical tastes, offering recommendations and building playlists that plugs into other music streaming and internet radio services as well as users' music libraries.
So, if you have the Last.fm Scrobbler app installed on your iPhone you will still be able to access your Last.fm playlists and access all of your favourite tracks, but that music won't be streamed by the company. Instead it will pull the tracks from your music library and from other music services that support the app, such as Spotify and YouTube if they're available.
Likewise, the Last.fm Player, which can be accessed in a web browser, will still allow users to stream their playlists as long as it can find the tracks on Spotify or another compatible service.
The announcement has upset a number of users, particularly those based in Canada where Spotify is still unavailable.