Spiral Frog...Possible threat to iTunes Music Store?

[Patch^]

I was watching BBC news a minute or so ago and there was a mention and interview of Spiral Frog. From my understanding Spiral Frog is going to be a new music store where you can download any song you like for free!

It makes money from advertising!

Also it sounds like Universal © has already signed up for it and they are the biggest record label in the world! Other record companies such as Warner Bros © Have also taken interest.

SpiralFrog will offer users of its no-cost web-based service the ability to legally download music by many of the world's most popular and award-winning artists.

"Offering young consumers an easy-to-use alternative to pirated music sites will be compelling," said Robin Kent, SpiralFrog's CEO. "SpiralFrog will offer those consumers a better experience and environment than they can get from any pirate site." Kent highlighted some key factors - legal digital files with no viruses or spyware in a controlled client-server architecture, quick downloading, and quality songs and music videos by great artists as among the primary benefits users will gain.

Website: - http://spiralfrog.com/

Press Release: - http://spiralfrog.com/press_release.aspx

News From Reuters: - Link

The service will start in December and at the moment only available in the USA and Canada.

By offering free music this is going to be big competition for iTunes. The service may not be successful. At the moment I can't see them creating enough revenue via Advertising. Then again Google manages ok

 

[gauchogolfer]

You won't be able to download any song you like, only those available on the site. The buy-in from major and independent labels will be difficult, I think. We'll see if completely ad-supported revenue is enough for the greedy labels.

 

[Patch^]

You won't be able to download any song you like, only those available on the site. The buy-in from major and independent labels will be difficult, I think. We'll see if completely ad-supported revenue is enough for the greedy labels.

Obviously you will only be able to download songs on the site, I wasn't saying it will be legal to download songs via other services such as websites/pirates etc. A majority of the music provide from Universal i.e. U2 will be free for download...well thats the impression I got from the BBC.

But I agree it will be difficult to see if ad-supported revenue will be enough for the greedy labels!

Also their DRM will not be compatible with iPod I hear. I think the tracks may contain advertising too..i.e. before the song starts and finishes..maybe not, I'm not sure.

The DRM itself seems a lot more restrictive too, I don't think you can burn it to CD or move it to a portable player yet

 

[Benjamindaines]

The DRM itself seems a lot more restrictive too, I don't think you can burn it to CD or move it to a portable player yet

In that case it's dead before it starts.

 

[Patch^]

In that case it's dead before it starts.

I concur completely.

There is no clear information yet that it will be on portable players, but the likeliness of not burning on CD seems like it: -

Digital rights management technology is built-in to all audio and video content as part of measures the company and its partners are actively taking to address piracy. "We want to provide the best environment for everyone - our partners and the recording artists, as well as consumers," Kent said. "Piracy continues to be one of the biggest issues facing the music industry where illegal file sharing and unauthorized CD burning are the prime means of music piracy. Digital rights protection will help us combat piracy and provide peace of mind for the record labels and the artist

It may be for use for CD Burning and Portable players..I guess all we can do is wait and see

 

[CrackedButter]

The BBC stated that it will not work on the iPod but it will on all the other mp3 players, one can only assume wma DRM at this point. The article also asks if Apple is under threat now because of this. Doubt it, I hate adverts and as do others, it isn't going to be that big of a deal.

 

[Benjamindaines]

The BBC stated that it will not work on the iPod but it will on all the other mp3 players

Well that's dumb, think about it, iPods make up what 90% of digital music players?

So how are you going to be a threat to iTunes if you don't have 90% of the market?

 

[zephead]

Great, another way of getting advertising shoved down the throats of the masses.

 

[CrackedButter]

Well that's dumb, think about it, iPods make up what 90% of digital music players?

So how are you going to be a threat to iTunes if you don't have 90% of the market?

We don't need to think about it, its obvious they are making an error there. They are not the first service (or the last) to exclude the iPod.

 

[MacBoobsPro]

I find it funny that theres all these companies trying to make a dent on ITMS but only offer music that doesnt play on the worlds most popular portable music player (forgot what its called... iPlay is it?)

How stupid are these people?

They are chopping there own arms off before they start to fight!

If ViralSprog does actually launch i can imagine ads at the start of the tunes too. "Buy Calgon for its 2 in one action" then Billie Jean kicks in!

Wow its free but it comes with ads. Limewire is free too, oh and look no ads! Still cant beat ITMS though!

BTW i dont use or condone Limewire I am just making a point. Honest troof dat is!

 

[andiwm2003]

i wonder who invests in these companies. there is a lot of money needed to start up this service for servers, salaries, lawyers, license fees and so on. don't expect revenues in the first year anyway. so we talk about many millions.

who invests in such a strange business model?

if it doesn't take off then the money is wasted.
if it is successful and gets 500 million downloads like itunes they need to make at least 500 million dollar revenue with ads to pay for the songs since it's about 1 dollar each song that the labels want.

 

[Anonymous Freak]

if it is successful and gets 500 million downloads like itunes they need to make at least 500 million dollar revenue with ads to pay for the songs since it's about 1 dollar each song that the labels want.

Remember, the labels don't get the full $1.00. The labels get about $0.60, IIRC. (And they might be willing to accept a little less on this service, because they see it as having higher potential 'sales'.)

 

[GoCubsGo]

Well it's open and no threat here

I cannot see how a site will threaten the Apple store when it:
Doesn't work on a Mac computer (see the site)
Doesn't allow you to transfer to the iPod or the Zune.

I find it funny how it only works with XP, talks about DRM, and then pisses all over the Zune! That was classic reading imho.

 

[PlaceofDis]

Great, another way of getting advertising shoved down the throats of the masses.

thats my thoughts exactly.
this is bound to fail imo. its too gimmicky

 

[vanmacguy]

Playing to a niche market?

In my opinion, they're not going for mainstream. Hence no iPod or (gasp!) Zune support.

They're going after the people that currently steal music. They can now get free music guilt free for the price of listening to some crappy ad's.

Not a serious threat to ITMS? No, not a threat at all as far as I can see.

It might do well, but only for a niche market. After all ITMS is doing very well indeed and you can still steal music?

I find it odd that they have actively targeted the Microsoft platform and have left out the Zune? But I guess MS doesn't want competition for The Social?

 

[Pathfinder55]

It will never over take iTunes, no one has even heard of Spiral Frog anyway!

 

[Anonymous Freak]

I find it odd that they have actively targeted the Microsoft platform and have left out the Zune? But I guess MS doesn't want competition for The Social?

It's because MS has the Zune locked up as tightly as Apple has the iPod. Zune requires Zune software, and only Zune-Store purchased content (other than pure open content like MP3 or ripped CDs,) same as how iPod requires iTunes, and iTunes Store purchased content (again, other than pure open content like MP3 or ripped CDs.) So if someone wants to make a new DRMed distribution method, they can only target Plays For Sure devices. They specifically can NOT target iPod or Zune. If they want to target iPod and Zune, they would have to go for no DRM. (Which is the only reason I can see the music labels embracing DRM-free music, so they can target the iPod without having to give in to Apple on the iTunes Store.)

It also doesn't help that the Zune wasn't even officially announced when SpiralFrog was announced. (There was talk of a Microsoft-branded digital music player on July 10th, 2006, but "Zune" and the lack of PlaysForSure compatibility didn't come out until September 2006, whereas SpiralFrog was announced in August 2006, and went live just as Zune was coming out.)