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SpiralFrog Misses December Jump Into Music Market
Wednesday, December 27th, 2006 at 8:20 AM - by
SpiralFrog made waves in August when it announced that it would offer a free and legal music download service by December. The promised launch has yet to happen, and now it looks like it may be late January 2007 before the service starts up, according to Forbes.
The music download service is hoping to generate revenue through online ads instead of track sales. Companies like Perry Ellis, Levi's, Aeropostale, and Benetton have all expressed interest in advertising through SpiralFrog.
Big-name labels Universal Music and EMI have already signed on, as has the independent label Koch Records. SpiralFrog hasn't said how negotiations with other labels including Warner Music Group and Sony BMG.
When SpiralFrog finally launches, it won't be able to offer one feature that the iTunes Store does: Cross-platform support. Music tracks downloaded from the service will be encoded in Microsoft's WMA format with digital rights management copy protection that supports Windows only.
The copy protection also prevents using downloaded songs on an iPod, potentially on Microsoft's Zune player, and also prohibits burning music CDs.
Whether or not an ad-based music download model can last long-term remains to be seen, but recording labels are optimistic. William Crowley, vice president of special markets at Koch Entertainment, Koch Record's parent company commented "Given the general fortunes of Internet advertising, especially rich media advertising, it does appear to me that there's a real opportunity there."
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