Wait...wasn't the CD deemed a dead format? Start-up Lala.com will launch a used CD trading service on July 4th. The company plans to give 20% of revenues to artists. The site also urges people who mail a CD to another member to "remove songs from your iPod or PC."

Coolfer's early prediction: The business plan is admirable but there aren't nearly enough do-gooders in the world to keep this company out of bankruptcy. American music fans talk a lot about wanting to help artists and demand they have equitable contracts with record labels, but this being America they're most likely to follow low prices and convenience. (New Yorkers demand air trade but every Starbucks in Manhattan is doing brisk business.) A company with an extra 20% in overhead puts itself in the unenviable position of having to compete against more efficient competitors.

Lala.com will offer new CDs or digital downloads in the event a particular used CD is not available. And it says it will have social networking aspects and personalized recommendation engines. Unless the company finds a niche, something that differentiates itself from the dozens of other online stores that will be spending their investment capital in the coming years, neither will matter.

Bain Capital and Ignition Partners, your $9 million is going the way of Kozmo.com.