August 29, 2006

Universal to try ad driven music downloads through SpiralFrog - still with DRM

Marshall Kirkpatrick

78 comments »

If you’re familiar with this story, see the updated details at the end. Universal Music, the corporate parent behind labels like MoTown, Geffen Records and many more, announced this morning that they will be making their entire catalogue available for free download through New York based startup SpiralFrog.com starting this fall.

SpiralFrog will offer free downloads wrapped in a still undisclosed form of digital rights management technology. How tired. Executive bios indicate the company has been around for more than two years, but we’ll see if they were doing anything more than lining up big names for their corporate roster, music partnerships and advertisers for the site. How about coming up with some workable alternative to the pathetic state of DRM with two years of work?

Music lovers have been demanding a different business model for some time, and it looks like at least some industry heavy hitters are going to give it a go via SpiralFrog. We’ve profiled several independent sites experimenting with new business models for music lately (Amie Street, Sellaband and Magnatune) but you had to expect the big guys to try something more traditional. See also eMusic, low cost and DRM free.

The CEO of Spiral Frog, Robin Kent, was former CEO of advertising firm Universal Mccann. Their CTO, Vesa Suomalainen, was an executive at Microsoft for 12 years. SpiralFrog’s management and directors is made up of a long list of big media execs, like Frances Preston (former President and CEO of BMI) and Jay Berman (former Warner representative to the RIAA). SpiralFrog told the Financial Times that they were in talks with Warner, EMI and Sony-BMG as well. This is clearly big media’s attempt to try free downloads driven by ads, but it’s still caught up in DRM!

Is there any chance that the ads will generate enough revenue to cover the costs to be incurred? Perhaps if the site is high profile enough there is. High end clothing retailer Perry Ellis is already lined up to advertise on the site. Sounds like a gamble to me, but we’ll see.

Update with details: I just got off Skype with the fantastic Neville Hobson (see FIR), who’s doing PR for Spiral Frog. He wasn’t able to convince me that this was really a compelling service, but he did provide some juicy details.

Spiral Frog will offer a desktop downloader for Windows Media Files (no iPods!) that can be listened to on one PC and two portable devices. Here’s the kicker - you must log in to the Spiral Frog service at least once per month, and see their ads, or your files will stop playing! The details aren’t fully set in stone, but it will be something like that. There will be links to third party sites of the record labels’ choosing if you’d like to buy your freedom to at least skip the ads.

Spiral Frog will also offer far more than just music, but also video and other digital content. The selling point here is that users will be able to access media legally, without the malware, bad network connections and pirate’s shame that comes from other online media sources. Weird Al’s new “Don’t Download This Song” must be linked to in reference to those arguments!

It will be an exciting day if the major labels come up with something truly more compelling than piracy on one hand or coercion on the other - but I don’t think this is it.

  • Sphere It

Trackbacks/Pings (Trackback URL)

  1. David Lee King » Blog Archive » Free Online Music “Store” coming in December…
  2. Alice Hill's Real Tech News - Independent Tech
  3. CrunchGear » Blog Archive » Universal Embraces Internet, DRM
  4. Preoccupations
  5. FT.com / Companies / Media & internet - Universal backs free music rival to iTunes at blackrimglasses.com
  6. Joe Wikert's Media 2020 Blog
  7. Will a Spiral Frog be the iTunes killer? - 360east | design, media, technology
  8. GigaOM » Ad-Supported Music Downloads?
  9. Spiral Frog is a bunch of bullfrog at Circle Six Blog
  10. Universal’s Free, Ad-Supported Music Downloads Have Quite The Hill To Climb at MobHappy
  11. Rags's Soapbox
  12. accelzone - techie weblog » Universal Embraces Internet, DRM
  13. Beta Alfa 2.0 » Så här kommer Spiral Frog att fungera
  14. Denken Über » SpiralFrog y otro modelo de descargas de música
  15. katzenbach.info » Neuer Online Music Store: Kostenlos, Werbung, DRM
  16. Digital Tech News
  17. The Black Marcel » Séance pub contre musique gratuite
  18. The Black Marcel
  19. SpiralFrog offers free music downloads from Vivendi -- Cool Tech Reviews
  20. Big News Today » Universal Set to Offer Free mp3 Downloads
  21. TechCrunch Japanese アーカイブ » Universal、SprialFrogで広告収入モデルの音楽ダウンロードサービスをスタート ― 依然としてDRM付き
  22. More On Universal/SpiralFrog: Here’s The Catch… « Broken Headphones
  23. TechCrunch en français » Rentrée-Crunch
  24. Grumpy Old Matt
  25. Universal’s Catalog for Download, Almost Free at SoCo Blog
  26. Kinch Blog » Blog Archive » Universal Music Releasing Entire Catalog For Free Over The Internet
  27. accelzone - techie weblog » MySpace Gets Into Music Biz
  28. accelzone - techie weblog » MySpace To Sell Music Through Snocap
  29. Techcrunch » Blog Archive » MySpace To Sell Music Through Snocap
  30. TechCrunch en français » MySpace va vendre de la musique avec Snocap
  31. Techcrunch » Blog Archive » EMI to add free music to SpiralFrog
  32. accelzone - techie weblog » EMI to add free music to SpiralFrog
  33. Free Music Download From SpiralFrog « Ray-Deo
  34. accelzone - techie weblog » More (mostly) free music: EMI to partner with SpiralFrog
  35. Profile - SpiralFrog « TechAddress
  36. *gonzolog » Spiral Frog: ¿el principio del cambio de actitud?
  37. Spiralfrog; gratis muziekdownloaden « “Library on the run”
  38. My Blog » Blog Archive » Free Music
  39. Myspace Music is Official at TEKPAD
  40. More (mostly) free music: EMI to partner with SpiralFrog » JenIT
  41. newsBreaks.net » SpiralFrog, Uni launch “free iTunes alternative.” DRM, many restrictions apply.
  42. newsBreaks.net » SpiralFrog, Uni launch “free iTunes alternative.” DRM, other restrictions apply.
  43. SonnyMotives » Blog Archive » iPod mới, iTunes mới và chiến lược của Apple
  44. Music Styling » In Get By, Talib Kweli blames this sexual obsession on what we view on television:
  45. Holiday Songs » Интернет, новые технлогии, деньги и музыка
  46. Holiday Songs » Интернет, новые технлогии, деньги и музыка
  47. Music website ideas | DropShipArea.com
  48. hayipuwasasaqocn
  49. SpiralFrog: Free Music Alive And Hopping

Comments

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  1. Sean

    Is the advertising going to be on the web site, or (cringe) embedded in the songs themselves?

  2. sengan

    I think they’re doing this because their targeted demographic doesn’t listen to the radio anymore. Do you know if it’s Windows only? Or Mac/Linux DRM too?

  3. TechcrunchReader

    Have you had a chance to try out the site?

  4. EP

    Who cares if they are restricted by DRM, the songs are free to download anyway…so instead of someone sending their friends a song they will send a link to the free download of the song.

  5. Marshall Kirkpatrick

    Nothing much there yet, just an announcement today that the service will go live in Fall. The news is that a. big label going for it, b. ad driven free downloads c. DRM not yet disclosed.

  6. Jason D. Schwartz

    If one copy of a song is available on a P2P network, it is as good as millions of perfect digital copies. So what is the point of DRM? To prevent more copies of the file being available on P2P networks? This isn’t an economy of scarcity; the number of copies available is irrelevant.

    What is the purpose of DRM in an ad supported model? A lot of people are going to watch ads in order to download music. Advertises will still pay to reach all the traffic these downloads will generate. Those opposed to DRM will still download from P2P networks. Does it really matter if the file on the P2P network was ripped from a CD or from this new site? Seems like it would be better to get these people to watch an ad than drive them to download illegally.

    This is a step in the right direction for the music industry and may be viewed in the future as a landmark move. Unfortunately it also highlights the music industries inability to fully adapt to the digital landscape.

  7. Matt

    Like all the other advertisng supported services like the existing Napster and upcoming Mashboxx they will be allowed 5 plays before the DRM really kicks in
    and only allows you a 30 second snippet unless you purchse the song .These services are just a replacement for internet radio .

    Yahoo and some other services are working on a proposal to offer MP3s for $1.99 from the major labels and albums about the $12-$15 range becuase the lables would rather that you buy albums than singles .

  8. Joe

    It’s hard not to believe that many (most?) of these advertising-supported business models are going to come crashing down to earth. I don’t see many kids or adults being patient enough to sit through hundreds of ads to download hundreds of songs. The word ANNOYING comes to mind.

  9. lemon obrien

    take a look at Tamago http://www.tamago.us if you want to see the future business model of media. The main difference is, people who buy media don’t just get to own it, but make money on it selling it to others. At the same time, anyone can publsih making royalties for each sale.

    Its new, and we’re trying get content and create the market; while at the same time, improving and adding features. Very hard job.

    We’ll be adding community like “mySpace” features soon.

    I only mention it here cause I know most of you guys are into web stuff. You have to open your firewall up, port 9000…and it most likely won’t work from behind a corporate firewall.

    anyway…it would be nice to see people in the valley actually start creating new and cool stuff instead of AJAX’n the same ole web technology.

  10. Greg

    This could be either completely awesome or absolutely horrible. The idea is great - free, legal, downloadable music from the major labels (well, a major label, at the moment).

    It all comes down to the execution. How intrusive are the ads and the DRM? Because that’s what’s going to keep people from just pirating the stuff.

    Please don’t screw this up, Universal. And when you do, don’t blame piracy, blame a hosed business model attached to a good idea.

  11. Marshall Kirkpatrick

    Just updated the post with more details on the DRM and it’s obnoxious.

  12. Zuko

    I’m curious to get everyone’s opinion on digital watermarking as a method of tracking song purchase history as a way of circumventing the need for DRM. A niche digital music store, http://www.traxsource.com, sells mp3’s that are specially encoded with the purchaser’s information, thereby enabling the store to track down the original file owner should the file end up illegally distributed on a P2P. What has surprised me for the 1+ years that the service has been around, is how no other service seems to offer this DRM-free approach; does anyone know why?

    Another nice feature of the site is the variable pricing structure based on bit rate (e.g. $0.99/192kbps vs. $1.99/320kbps); again, something no other service offers, to my knowledge.

  13. jltreads

    Okay, so I’m an old fart in web 2.0 terms (44, tech CEO), but the whole idea of having to go once a month and get a dose of advertising to keep listening to the music is a non-starter for me.

    Now, I’m driving north on 101 near Cupertino and WTF!!! my music stops playing on the MP3 player jacked into my bimmer. Quick, pull over to the nearest Starbucks, log into t-mobile, ….

    Hello iTunes….

  14. kaiju

    WHO NEEDS THIS CRAP? JUST USE EASYNEWS!

  15. DJ Escape

    This is a dangerous move in my estimation. While I understand the purpose of DRM to be embedded in their songs that they intend to make available to the general public, the problem lies with what was mentioned in a earlier comment, it’s their attempt to curb internet radio.

    If the only songs available are those that have been doctored with proprietary DRM, it makes it very difficult if not darn right impossible to use the MP3’s, OGG, WMA songs.

    They just might be shooting themselves in the foot, if not for their own financial gain they are doing their artists are huge dis-service since internet radio is still in it’s infantcy and it’s just a matter of time it takes off and audio equipment manufacters jump at the chance to make wifi enabled devices so that consumers can listen to any internet feed, competing with HD-FM and Satellite Radio services.

    DRM is just a bad idea.

    Just my thoughts.

  16. facilities

    Yeah, I don’t know about these advertising supported business models. But, companies can DRM all they want, it’ll be cracked.

  17. Eric

    I read the headline and thought “too good to be true”.

    Unfortunately, I was right.

    What’s the point of DRM on free music? The whole idea is assinine.

  18. Alan Patrick

    We’ve done research in the emerging broadband interactive advertising space, the thing that comes back time and again to make advertising attractive, is relevance. This requires a partnership between listener and advertiser, a pull rather than push model - or at least a permission based push model.

    Will this work…..well, “legal” free music is fairly attractive to the mass market, and if enough of a partnership is there to make the ads relevant then maybe. I wonder though, whether any advertiser would really want their product associated with people being subjected to their ad, as a means to getting music re-enabled ? I would suspect that smaller sessions of ads, placed more frequently, will be more tolerable over the long run.

  19. Duncan

    Oddly I find the number of negative comments strange, as much as I hate DRM myself, I cant help than think that this is at least a move in the right direction from the record companies, sure, it might not be perfect but they’re at long last trying to combat music swapping and P2P by offering free music instead of just trying to jail and fine all and sundry. The question then becomes, if other record companies follow suite, and the kiddies like the idea of legal-free music, what then for iTunes?

  20. Melmoth

    Someone’s already put up an obit for iTunes at http://asadodo.blogspot.com/20.....-2006.html - well I found it funny, anyway.

  21. Friends of the Stars

    This is the funniest thing the Musis Biz has come up with in a while. What next? Stand on one leg and touch your nose to get a free t-shirt?

    It got me thinking, though…..Would a variation on the Sprialfrog model work in a slightly cheekier and much smaller way?

    We’re going to try it out. Have a look at http://friendsofthestars.co.uk if you get the chance.

  22. Sian

    What’s the point in dowloading songs that you can’t listen to on your ipod and being made to watch adverts.

  23. archy

    Advertising free download MP3 music http://www.sign-on-advertising.....ic-ads.htm
    Listen and download free music from famous artist who advertise here.

  24. Sven

    the concept or thought rather is not too bad add support downloads, honestly the DRM is a big pain in the ass, to be frank its qutie nisulting actually, what the hell, it just stops working whilst your up and away and then what.
    Also, reffering to a previous post, charging 1.99 for a 320kbps file is just plain waste too. Especially when you charge 1 dollar less for a lower bitrate file, a bit silly really.

    In terms of a business model, I think http://www.magantune.com have got it somewhat right, a host of supported formats from WAV to Mp3 (yes, people WAV) without any form of DRM, the funny part is, they “allow” for sharing the files (even they don’t ahve DRM), which is totally unnesessary but a nice touch anyways. Magnatune provides artists with 50% of all cashflow. Not bad. Only downside to it is, they do not have a great number of artists signed up.

    Coming back to spiral frog, add support , fine, DRM that requires users to forcefully watch the adds…not so fine. Risky endeavour.

  25. Paud

    I was just browsing and i found your website,

    I am also curious to what may be happening when spiralfrog is launched.

    I managed to aquire the following domains when i heard the news,
    Please let me know what you think?

    http://www.spiralfrognews.com
    http://www.spiralfrogads.com
    http://www.spiralfrog.me.uk
    http://www.spiralfrog.org.uk
    http://www.crazyspiralfrog.com
    http://www.crazyspiralfrog.co.uk
    http://www.spiraltoad.co.uk
    http://www.spiralfrogmobile.com
    http://www.spiralfrogonline.com
    wwwspiralfrog.co.uk
    wwwspiralfrog.net
    wwwspiralfrog.org
    http://www.spiral-frog.net
    http://www.spiral-frog.org
    http://www.spiral-frog.eu
    http://www.spiralfrogmusic.co.uk

    Cheers,

    Paud

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  27. Stu

    SpiralDog.com
    What will I offer?

  28. Andrew

    Try Zaziggy.com. It’s independent artists, but the ads are not movies, they’re banners paying the artists. The file formats are MP3 and they’re not regulated. The artists are screened to make sure there’s some level of quality on the site. The artist lineup is small for now but growing steadily.

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