Tuesday, September 18, 2007
SpiralFrog Jumps to Life
Much to my surprise free music download site SpiralFrog launched after months of delays. The website offers copy-protected music that won't play on an iPod or can't be burned on CD, and requires users to check in online at least once a month.While I have been extremely skeptical of this business model given what companies must pay copyright holders to distribute their music, the company is rightly targeting its ads based on demographic profiles. This will ostensibly enable SpiralFrog to charge higher ad rates, but I'm not so sure that people who are too cheap to pay a buck to download music are high on advertisers' lists.
As much as streaming services such as Real's Rhapsody have a challenge in making money, the hurdles that SpiralFrog must overcome with a download service are immense. Someone is likely to break their copy protection, and with only one major label on board, SpiralFrog is seriously limited as a service.
The likelihood of SpiralFrog being a profitable and popular service are equal to that of the Kansas City Royals playing in a World Series. Don't hold your breath.
Source: The Associated Press
Posted By John Gartner at 10:12 AM
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