SpiralFrog Lily Pad Enters Troubled Waters

SpiralFrog, the as-yet-unreleased, ad-supported music service, is now reportedly in serious trouble. According to multiple sources, the once-celebrated destination has recently entered a very difficult juncture. "SpiralFrog looks dead," one executive close to the company flatly told Digital Music News on Tuesday. Another, a major label executive, pointed to a similar verdict while referencing "specific model flaws". The news surfaced at a late hour, making it difficult for SpiralFrog to return an inquiry, though a published report in CNet also validates the claim. The article pointed to the departure of chief executive Robin Kent, as well the exit of "members of his executive team and three board directors". The article cited sources "connected to the company."
The development follows a SpiralFrog media frenzy over the summer. The energy stemmed from the idea of ad-supported digital music, viewed as a possible solution to the challenges faced by the recording industry. In late August, the fever pitch peaked following a licensing deal with Universal Music Group, easily the largest of the four majors. That attracted other content holders, including EMI Music Publishing, though SpiralFrog was reportedly paying sizable licensing fees to attract major content holders. The tough fate of SpiralFrog takes some of the steam out of the emerging, ad-supported sector, though others - including Qtrax, Napster, and Baidu - are actively pushing the possibilities.