I had wished and hoped that this should happen and now its going to happen. Universal Music Group, the world’s largest music company, has agreed to make its entire library of songs in collaboration with SpiralFrog. This is truly exciting. They would show a 90 second commercial for an audio song and 120 second commercial for a video. This should have been there earlier. We do see this on televisions. We watch commercials and we get dramas/movies etc (and we all know that TV commercials have a great impact).
This is probably the exact same model. This would bring new audience for the advertisers. Many people who use pirated music would shift to this. The songs would be ad-free and we can listen to them (as many times as we want) on any device (computer, portable music players, cell phones etc.). People who pay $1 for each download would also go for this.
Time is money and so obviously SpiralFrog’s Chairman Joe Mohen said, “The currency we’re using is time”. I did some interesting calculations for this “TIME IS MONEY” part for audio songs (you can do it for videos on your own ;)).
Time to download from iTunes at $1 = 20 sec
Time to download from SpiralFrog a $0.00 = 90 sec
Time wasted in SpiralFrog (allegedly) = 90 – 20 = 70 sec
Money Saved for spending extra 70 sec = $1 approx.
For Back-of-the-envelope calculation, let say that we save $1 for each minute that we spend watching advertisements.
So IFF you are earning more than $1/minute (i.e $60/hour) and you can work the whole day, only then you should go for $1 downloads as you will earn more in the saved 1 minute from paid downloads. Otherwise if you want to download something and have got extra 60 seconds that won’t earn you $1, go for these AD Supported downloads :P.
By the way, if you make $60/hour (and work for 16 hours, sleep for 8 hours), you make $960 a day. This makes 4800/week (5 days/week) and makes 19200/month (4 weeks/month) … which makes $230400/yr. If you are earning (and working) that much, probably this service was not for you 😛 – its targeted at teenagers (or other people) who spend a lot of time on music everyday.
Way to go SpiralFrog. I am excited about your December 2006 launch.