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Royalty Free Music > Music Blog

March 8, 2006

Royalty Free Music News: Music Service Offers CD Swap

Despite the fact that iTunes has now reached over one billion song downloads and digital album sales, CD's are still an incredibly popular medium for purchased music. A new music sharing service that will capitalize on CD popularity is launching in July, working under the premise that customers would swap CD's instead of mp3's if the opportunity were available to them.

The new service is called Lala Media and has been given $9 million in funding by Bain Capital and Ignition Partners. Lala Media will help subscribers trade their used CD's for CD's they want at $1 per CD plus a 49 cent shipping and handling cost. Twenty percent of the company's revenues will go to recording artists.

Lala will provide prepaid envelopes to CD owners and is modeling their system on that offered by DVD rental company Netflix.

Sharing digital music has created major problems for the recording industry, but Lala is using U.S. Copyright Law to its advantage. According to Copyright Law, owners of legally bought physical media can transfer it to another user without paying royalties.

This service could present a problem, however, since customers could easily make digital copies of a CD and then trade it to another person. While the company is encouraging potential subscribers not to do this, it seems unlikely anyone will be able to ensure it won’t happen.

Lala is still negotiating with record labels to get digital licenses so it can eventually offer purchase of digital files as well. The CD trading program is currently in private beta testing and should be made publicly available on July 4, 2006.

For more information on this story click here . As always, Royalty Free Music.com offers a large selection of downloadable, digital royalty free music that can be purchased at low cost and used for a lifetime. We also offer purchasers the option of receiving tracks on CD for their convenience.

Posted 8 years, 9 months ago on March 8, 2006
The trackback url for this post is http://www.royaltyfreemusic.com/music-blog/bblog/trackback.php/69/

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