SpiralFrog, set to launch in Q1 2007, was supposed to be a new model of digital music distribution. The plan is an advertiser supported model, where users get to download music for free — as long as they watch advertising.
It sounded like a great plan, especially since Universal Music Group and BMI had both signed on to offer songs for free. And though the song may not entirely be over yet, industry reports reveal that things with the company have definitely gone awry. According to sources, Robin Kent, SpiralFrog CEO, was ousted, and at least five members of his executive team have resigned.
Given the findings of the International Federation of the Phonographic Industry’s report released last week…
However, despite this success, digital music has not yet achieved the “holy grail” of compensating for the decline in CD sales. Meanwhile, digital piracy and the devaluation of music content are a real threat to the emerging digital music business.
…whether SpiralFrog continues or not, the company’s business model could be a boon to the music industry. Though money wouldn’t be made in made music sales, there would be advertising revenue to consider. Do you think an free music download service that’s ad supported would work?