Universal backs free music rival to iTunes

[Zaphod]

Universal Music, the world’s largest music company, is backing a start-up that will allow consumers to download songs for free. It will rely on advertising for its revenues, offering a different business model from that of Apple Computer’s popular iTunes music store.

The move reflects music companies’ willingness to experiment as they try to capture some profit from the boom in digital distribution still dominated by illegal file-sharing networks.

The service, SpiralFrog, represents a departure from Apple’s 99 cents-a-song business model and other legal download services which charge a subscription fee by being completely free. It is due to start up in December.

Source: Financial Times. The official press release. Placeholder website for the service.

Marketing stunt or viable alternative? Could the enterntainment industry be getting a clue or will this be another user-unfriendly flop?

 

[Tim Murray]

It will flop as soon as someone figures out how to circumvent the ads.

 

[Bobbler]

I'd almost rather pay 99 cents a song (which is rather insignificant, if you ask me) than deal with ads to get at my music. It sort of depends on what they mean by an ad based service though, it could be just advertising before you dl a song, but it could also just as easily be ads playing while you are listening to the music (which may only play in their software, who knows).

 

[Zaphod]

It sort of depends on what they mean by an ad based service though

Well, exactly. I can personally see an ad-based service as a viable business model, but it all depends on the implementation. I think i'd be willing to subject myself to sitting through ads do download a song (in particular for Universal there should be opportunities to feature movies, DVDs and related music), but definately not listening to an ad for every playback and not using some proprietary player.

It really boils down to one simple design requirement: Don't be annoying!

I kind of doubt they’ll manage that, but we’ll see come December.