“Rob Peter and Pay Paul” is probably the right adage to describe the music piracy caused by some online music websites and file-sharing networks. But, a new set of people called “advertisers” have come forward and saying to these online music websites that “Listen, Here’s the deal. Get Paul to visit me. I will give you the currencies that you need. Keep some for you and share the rest with Peter. Don’t rob Peter…He will not produce music if you keep robbing him“.
So what happens now?
Paul gets free music and gives his time to visit Adveritser.
Advertisers get Paul’s attention and gives money.
Peter gets money & peace of mind and gives music.
Music websites coordinates the transaction, get to make profits and gives an online service!
That essentially sums up the intention behind the new venture called “SpiralFrog” and “QTrax”.

SpiralFrog is a new online music destination, offering ad-supported legal downloads of audio and video content licensed from the catalogs of the world’s major and independent record labels.
SpiralFrog will be a secure environment where music lovers can satisfy their unyielding passion and thirst for music, entertainment, and information. Our site will be as multifaceted, smart, and current as the audience we hope to attract. An audience that we believe is the driving force behind the way music is created, discovered, and consumed today.
Who are willing to supply legal music to SpiralFrog?
Universal Music Group
EMI Music Publishing
Where does the Revenue come from?
Business Model is based on sharing the “income streams from advertising” with the content partners. Customers pay with their time.
Is it sustainable?
It all depends on making the customers to visit advertisers. It is the job of advertisers to monetize the footfalls. But it is a challenge for Spiralfrog to attract highly targeted audience and luring them to advertisers website. Not easy!
How different is it from some Joe poky’s website supplying MP3 but filled with Google adsense?
Well nothing in terms of delivery of service. But the music is legal! Moreover, It is not plain Google adsense, where the advertisers are not official partners with you.
Is it really free? Any catch?
Yeah…in a way it is really free. But users are required to visit SpiralFrog each month to validate the music. Otherwise the music expires. They are doing this through some DRM Technology. Well, I think soon there will be some hackers who would break that validation mechanism. A definite Watch-out-Factor!
Any other similar company?
Yes there is. QTrax [You play the music, We pay the artists!] . QTrax has a slightly different delivery mechanism. It allows free download but in proprietary format called “MPQ”. These tracks can be played only in QTrax player. Moreover the music expires after being played for specified number of times. Unlimited music playback can be obtained for a premium fee.
SpiralFrog has plans to extend this ad-supported business to Video [MP4s?] in 2007. I think it is just a matter of time for this to extend to e-books and all content that could be delivered over the web.
Come December, we will know the answer from SpiralFrog! For now, it looks all bright and colourful on paper…
What say?