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Thursday, December 28, 2006

SpiralFrog Looking Like a Toad

SpiralFrog was supposed to leap into "free" music downloads this year, but it didn't happen. According to Forbes, the company now hopes to launch at the end of January. SpiralFrog has yet to land the catalogs of Warner Music Group or Sony BMG, so if it launches early in 2007, it will be dominated by smaller labels, which drastically reduces the service's appeal. And as Forbes pointed out, two other alternative music revenue schemes -- Qtrax and Mashboxx -- haven't gotten out of the gate with services even after years of trying. As I've said before and before, this is a bad idea that has almost no chance at becoming a profitable venture. To repeat, the cost that the company has to pay to the copyright holders is higher than any potential ad revenue, you can't transfer the music anywhere, and someone will find a way to hack the digital rights management software. Napster continues to struggle to make a buck with its free and subscription services for streaming music online, which is much cheaper for them and safer for the music industry. Napster lost $9 million during its most recent quarter, which is an improvement over the previous year, but still far from profitability. If anyone could make ad-supported music work, it's Napster.

By John Gartner at 11:59 AM | Comments (2)

(2) Thoughts on SpiralFrog Looking Like a Toad

Can a site acheive viral marketing when it doesn't sell or advertsing anything? That's exactly what http://www.KeyFess.com has done. An online confession site that offers its visitors a ad free anonymous site where they can post, read & vote on confessions, rants and secrets. After only two months this site receives almost 10k new visitors a day and has reached addictive levels. I must "keyfess", it is refreshing to frequent a site that strictly wants to entertain its visitors and asks for nothing in return. All this while it has a zero page rank? Well, it is only 2 months old, it will be interesting to see where it is on its anniversary!

Comments by judy : Friday, December 29, 2006 at 01:19 AM

Not only Qtrax and Mashboxx will purpose a new model of digital distribution, the website www.airtist.com will purpose a viable innovative concept of free and legal downloading for the netsurfer and remunerative for the artist with an ad.
See you on www.airtist.com !

Comments by Reynaud Olivier : Tuesday, January 02, 2007 at 01:15 PM

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