New music distribution system

This is something I've been waiting for - music download service for free, revenue from advertising!

FROM New Media Age Magazine, 01.09.06

Music start-up to offer ad-funded downloads service

Author: Sam Matthews | Source: nma.co.uk | Published: 29.08.06

Music start-up SpiralFrog is launching an ad-funded music download service in December.

The group has received backing from Universal Music, with artists including U2 and Gwen Stefani, and is currently in negotiations with the other major labels to have their roster of artists included on the site.

SpiralFrog's business model is based on sharing income from advertising with Universal and other content partners.

"Offering young consumers an easy-to-use alternative to pirated music sites will be compelling," said Robin Kent, CEO of SpiralFrog.

The group's research revealed that consumers are willing to pay for content by watching "non-intrusive, contextually relevant, targeted advertising".