September 28, 2007

In a quote to the Globe and Mail, SpiralFrog CEO Joe Mohan succinctly framed the difficulty in selling his business model:

"It's like going to General Motors and convincing them to give away the cars for free, in return for half the gas money. This was not an easy undertaking."

Getting label support will be tough if that's an appropriate metaphor. Give up a chunk of money for half of some trickles of revenue? The slickest of salesmen would have a hard time proving the value in that deal, and he might come to realize he's in the wrong line of businessl. It might work if people buy a lot more gas. Similarly, SpiralFrog's pitch hinges upon the bet that people will download a lot more music. Personally, I'd take a wait-and-see approach. If people actually binge on ad-supported music -- unlikely, I'd bet -- then it would be worth jumping in.

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Posted by Glenn at 5:36 PM | | | Ad-Supported Music

[music jobs] Brand and Online Marketing Manager at The Ascot Club/Am Only; Brooklyn, NY.