SpiralFrog has said that its advertising-supported service has
the backing of Universal, which has allowed its back catalogue to
be made available to the service in the US and Canada.
"Offering legally-authorized audio and video downloads in an
advertising-supported environment works, as our business model is
based on sharing our income streams from that advertising with our
content partners like Universal," said SpiralFrog chief executive
Robin Kent.
Under the plan, consumers would watch advertising and in return
would be able to download music for free. Universal's roster
includes U2, Eminem, Stevie Wonder, Elton John and Girls Aloud.
Apple's iTunes currently sells tunes for 99 cents in the US, and
controls 80% of the legal download music market. Music industry
trade bodies, though, still estimate that there are 40 illegal
tracks downloaded for every one that is paid for online, and it may
be this figure that Universal is keen to reverse.
Competition is likely to become fiercer in the download market
in the coming months as Microsoft launches its iPod competitor Zune
and a companion music download service. MTV has also launched a
service called Urge. SpiralFrog says that it will go live with its
service in December.
SpiralFrog's Kent said that the company will aim to attract
users in the 13 to 34 age group. "Our target audience is the
driving force behind the changes in how music is created,
discovered and consumed," said Kent. "They are the future of music.
We believe SpiralFrog's differentiated offering will be highly
appealing to them as well as to content providers."
"[We will be] legally delivering what the majority of users want
– content they pay for only with their time. It's content that
advertisers are willing to pay for on their behalf," said Kent.
