Music Site To Let Users Swap CDs
Friday, March 10, 2006 by AtlanticCanadianScot | Discussion: Websites
A new online music service called La la Media Inc. aims to offer full-length CDs for $1 by letting members trade used physical discs, in a new twist on the popular but legally challenged practice of online song swapping
Backed with $9 million in funding by Bain Capital and Ignition Partners, La la works like an online music co-op by enabling members to trade physical CDs they own for physical CDs they want, Bill Nguyen, co-founder of La la, said ahead of the Tuesday announcement.
With 1.8 million album titles available, members trade the CDs in prepaid envelopes, much like popular mail-order DVD service Netflix Inc. operates.
La la said it is talking with the world's major music labels to obtain licenses for the sale of digital music.
La la said it enables members to buy a physical CD new if they cannot get it for trade and also hopes to eventually offer digital album downloads at retail prices.
It does not plan to offer digital downloads of singles.
Officials for the major labels -- EMI Group Plc, Vivendi Universal's Universal Music, Sony Corp.'s and Bertelsmann AG's Sony BMG, and Warner Music Group Corp. -- either declined comment or were unavailable.
A spokesman for La la said it expects 30 percent to 40 percent of its revenues will come from trading, with the rest to be obtained through sales of physical CDs, through a deal with CD distributor Baker Taylor, and eventually from digital downloads.
La la founders argue that, unlike underground online file-sharing services, which have been sued for copyright infringement, La la is protected under an exception to the U.S. Copyright Act. They contend that the owner of a CD can transfer a legally acquired copy without permission or payment of additional royalties.
A member will pay $1 to La la for facilitating the trade on receipt of a disc from another member, plus a 49 cent shipping charge.
La la said it will set aside 20 percent of its trading revenue for recording artists.
Other Web sites, such as Peerflix and BarterBee, are also enabling consumers to swap used merchandise.
Peerflix allows members to legally trade DVDs, while BarterBee lets people swap between multiple media, such as DVDs, music and games.
Backed with $9 million in funding by Bain Capital and Ignition Partners, La la works like an online music co-op by enabling members to trade physical CDs they own for physical CDs they want, Bill Nguyen, co-founder of La la, said ahead of the Tuesday announcement.
With 1.8 million album titles available, members trade the CDs in prepaid envelopes, much like popular mail-order DVD service Netflix Inc. operates.
La la said it is talking with the world's major music labels to obtain licenses for the sale of digital music.
La la said it enables members to buy a physical CD new if they cannot get it for trade and also hopes to eventually offer digital album downloads at retail prices.
It does not plan to offer digital downloads of singles.
Officials for the major labels -- EMI Group Plc, Vivendi Universal's Universal Music, Sony Corp.'s and Bertelsmann AG's Sony BMG, and Warner Music Group Corp. -- either declined comment or were unavailable.
A spokesman for La la said it expects 30 percent to 40 percent of its revenues will come from trading, with the rest to be obtained through sales of physical CDs, through a deal with CD distributor Baker Taylor, and eventually from digital downloads.
La la founders argue that, unlike underground online file-sharing services, which have been sued for copyright infringement, La la is protected under an exception to the U.S. Copyright Act. They contend that the owner of a CD can transfer a legally acquired copy without permission or payment of additional royalties.
A member will pay $1 to La la for facilitating the trade on receipt of a disc from another member, plus a 49 cent shipping charge.
La la said it will set aside 20 percent of its trading revenue for recording artists.
Other Web sites, such as Peerflix and BarterBee, are also enabling consumers to swap used merchandise.
Peerflix allows members to legally trade DVDs, while BarterBee lets people swap between multiple media, such as DVDs, music and games.
Jafo
Reply #2 Sunday, March 26, 2006 1:56 AM
Reply #2 Sunday, March 26, 2006 1:56 AM
| Time will prove me right! You'll see! |
Unlikely.
Secondhand reselling of all sorts of merchandise has been going on since the dawn of commerce....be it trading in skins or clubbing maidens over the head and dragging them off as booty.....
I would bet the only legal 'issue' argued may be with the proffitting from the resale by a third party....whether a 'royalty' surcharge is warranted....or not...
AtlanticCanadianScot
Reply #3 Sunday, March 26, 2006 9:49 AM
Reply #3 Sunday, March 26, 2006 9:49 AM
thank you Jafo for your enlightened, balanced & logical comment on the state of what people feel like & can legally do with their purchased 'pocessions'
TheGuyPC
Reply #4 Sunday, March 26, 2006 6:40 PM
Reply #4 Sunday, March 26, 2006 6:40 PM
LOL!
People, I was being sarcastic!
Heh,heh,heh...........
People, I was being sarcastic!
Heh,heh,heh...........
Jafo
Reply #5 Sunday, March 26, 2006 7:33 PM
Reply #5 Sunday, March 26, 2006 7:33 PM
| People, I was being sarcastic! |
And yet there will be people out there who firmly believe your stance wasn't sarcasm but reality.
Idiocy knows no bounds.....
nottie_
Reply #7 Wednesday, April 5, 2006 5:52 AM
Reply #7 Wednesday, April 5, 2006 5:52 AM
So lets get this right I can swap all my cd's in my collection for other cd's and then do the same with them?
Won't last long
copy cd, swap cd, no bit torrent downloads all for a buck 49........ good bye online music retailers.....
Won't last long
copy cd, swap cd, no bit torrent downloads all for a buck 49........ good bye online music retailers.....
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Reply #1 Saturday, March 25, 2006 3:27 AM
You don't buy a couch, or a car etc. and expect to have the right to re-sell it in ANY FORM! They are copyrighted! Designs, advertising etc...! As such, they can ONLY BE licensed to the ORIGINAL purchaser!
This will go NOWHERE!
What's next?
Who among us doesn't see the need to eradicate copyright leeches like e-bay?
Time will prove me right! You'll see!
Oh, that lamp?........ummmmmmmmm, I got it at.........ummmmmmmm, Walmart! NO, Tiffany's!
Yeah, that's the ticket!