Spiralfrog Launches

You have probably read that Spiralfrog launched today. I used the service in beta but figured that I would wait until launch to write about it.

I have to say that, overall, I am impressed. The site is buggy but that can be worked out. It was easy to find and download tracks. The tracks can be handled in WMP like any other track.

Perhaps the thing I am most impressed about is the quality of the inaugural advertisers. I saw ads from Chevrolet, the US Army, Burger King and Acuvue (Johnson & Johnson). Advertising Age reports that charter advertisers also include Colgate and Discover Card.

This is not a huge number of advertisers but they are definitely A-list. Spiralfrog might not be charging them much, if anything. Still, I interpret their willingness to be associated with an unproven advertising supported downloaded music site to be an endorsement of the concept. This is a milestone leap for our new industry.

Unfortunately, as I have posted before, I don't think Spiralfrog will survive. The reason is simple: I don't think they can make enough money from their approach to advertising to support their costs, profit and royalties.

Essentially Spiralfrog is just another website supported by rich media ads. The difference between Spiralfrog and other sites, however, is that Spiralfrog provides high cost content. Rich media ads don't command a high enough CPM to pay the costs.

I am sure that Spiralfrog's deal with the labels includes a revenue share agreement. I believe that in the end, however, the revenue that the labels earn from Spiralfrog just won't be enough to keep their interest.

Success or failure, Spiralfrog's launch is good news for ad-supported downloaded music.