Even Dead, SpiralFrog Causes Controversy
May 28, 2009 at 4:54 AM (PT)
Controversy trailed SPIRALFROG while it existed and continues to hound the company, even after closing down, reports CNET NEWS, writing "some shareholders of SPIRALFROG, the ad-supported music download store that shuttered its site on MARCH 19th (NET NEWS 3/20), are unhappy with how the company's assets are being sold. Separately, several site users have complained that they weren't warned they could lose their music if the site closed down.
"NEW YORK-based SPIRALFROG offered free downloads to users who agreed to be served advertisements with their songs. In AUGUST 2006, the company announced that it had acquired the rights to offer UNIVERSAL MUSIC GROUP's vast library of songs. SPIRALFROG managers proclaimed that ad-supported music would defeat illegal file sharing. THE NEW YORK TIMES wrote SPIRALFROG could be an iTUNES killer.
"After that, however, the company suffered through management shakeups and cash crunches, and failed to cut partnerships with two of the four largest music labels. When it finally closed down, SPIRALFROG owed at least $34 million.
"Some of the people who lost money when SPIRALFROG went down spoke to CNET NEWS about whether some of the company's assets are worth more than they are being sold for. For example, MYMOJO.COM, a mobile content service, acquired SPIRALFROG's domain name for $20,000, sources told CNET NEWS."