I’ll be interested to see how a new music download service does. It’s planned to launch later this year, and it’s name is SpiralFrog.
The venture has the backing of Universal Music, the world’s largest music holder, so it should offer a very wide selection for download.
What makes SpiralFrog different than most of the major legal music downloading sites (like iTunes and Wal-Mart and the current incarnation of Napster) is that it does not plan to charge money for the songs you download–at all.
This is, of course, a strategy that is being used by some sites that have a small number of songs one can download for free, but SpiralFrog aims to give iTunes a run for its money by giving away music free, and with the world’s largest music company onboard (and hoping to get other big ones to play, too).
So what’s the catch?
I mean, SpiralFrog has to make money somehow. So how?
By advertising.
What they’re betting is that there is a sweet spot where the curves intersect between the intrusiveness of the advertising and the attractiveness of the music, so that they can sneak in enough advertising to make money without driving off the audience, allowing the economics of the venture to make sense.
That such a sweet spot exists is not an unreasonable guess. This is, after all, the model that governs terrestrial radio and broadcast television: You get to watch programs for free, but the station gets to play you advertising, too. And the economics of radio and TV work.
Whether it will work for music downloads, I dunno. If they can make money with relatively unintrusive advertising, it may, but if they only way they can generate dollars for their advertisers is make you hear a commercial each time you listen to a song you’ve downloaded then forget it.
I’m sure that their opening strategy isn’t to use advertising that is that intrusive (that would be crazy), but I’ll be interested to see just what level of intrusiveness the think they can use without driving off users of the service.
So I’ll be interested to see the details of how they want their strategy to work when SpiralFrog launches this December.
In the meantime,
GET THE STORY.
Incidentally, an interesting statistic from the story:
A report released last month by the International Federation of Phonographic Industries revealed there were still 40 illegal downloads for every legal one.
By giving away music for free, SpiralFrog is trying to cut down on that ratio (assuming it’s correct), and they might do it. Teenagers can’t as easily pay for songs from iTunes because they don’t (I hope in most cases) have credit cards, but advertisers have been able to milk money from teens indirectly via all kinds of advertising.
If they can do it in this case then they may be able to change the ratio of illegal to legal downloads (whatever the real one is). Young people may be willing to put up with advertising to get the song they want whereas they often simply aren’t able to use a fee-based download service.

