Free All Music to offer free MP3s, new ad model

Free All Media, an Atlanta-based start-up, is the latest company to propose an ad-supported music downloading service. The company, which just announced its first seed round of funding Wednesday and expects to begin public beta testing by December, hopes to differentiate itself from flameouts like SpiralFrog with a unique advertising model that asks users to participate more directly in choosing the ads they'll see.

The company's CEO, Richard Nailling, explained how the company's Web site, Free All Music, will work. Users will select an MP3 they want to download and a sponsor they'd like to "buy" that MP3 for them. They will then watch a video advertisement, between 15 and 18 seconds in length, from that advertiser. Once the ad is completed, they'll be free to download the file, a 256kbps MP3 with no copy restrictions. No further advertisements will be served for that download.

But here's the unique part--Free All Music will then use the downloader's handle in other banner ads for that sponsor, which Free All Music will place around the Web using an (as yet undisclosed) third-party ad network, as well as through its own ad network, which will focus on music-oriented sites. In other words, you might be visiting CNET and see "MattR just downloaded 'Angry Chair' by Alice in Chains...sponsored by Converse." In this way, Free All Music will be able to sell multiple ads per download and perhaps earn enough money to cover the license fee for each song.

There's a catch, of course: users will only be able to download as many songs as Free All Music can sell sponsorships for. At launch, the company is aiming for what Nailling calls "typical iTunes behavior," which is 15 songs per month, spread over three sessions. If the site takes off and advertisers buy more space, the song allowance will increase.

The key to success will be whether the company can get all four major labels and enough indies on board to make for a competitive selection of music. So far, the company claims it's signed up one major label (unnamed), and is aiming for the "full digital catalog" from each label, giving it full parity with iTunes and sites like Amazon MP3.

Would you be willing to sit through an 18-second video ad in exchange for a perfectly legal and guaranteed legitimate MP3? Or will you stick with file-trading networks?

Correction at 7:13 a.m. PDT October 1: This post incorrectly stated the number of free songs that Free All Music aims to offer at launch. The site plans to offer 15 free downloads per month, spread over three sessions.

[MyRightEye]

Just take my buck thanks.

[roryk27]

Yes.

[quepasakoolj18]

I think this is a cool idea.

[PandaSage1221]

I'd give it a try, at least. But I'm really kind of over mp3s and back into CDs. Although, it's hard to beat free* music.

[ofmyony]

I would sit through a whole movie trailer. Get Sony on board and Time Warner and I will sit through their movie and tv show trailers. So count me in,

[terminalblue]

but you wont see movie trailers...you see ads for diabetes medicine and online casinos. i know that these companies have to start somewhere...but this seems like a gimmicky dead end.

[tvjames_]

But that's his point, right? When I used to work for Warner Bros. Online, the powers that be used to remind us regularly that "Warner Bros. exists to make money. Everything else is gravy." So here's a consumer (that probably represents a large number of people) saying "Promote your movie. I'll give you 3-5 *minutes* of my time in exchange for that 3-5 minute song and you can promote one of your products."

There's other added benefits as well. If they serve up a movie trailing that *uses* that same song, it's going to further reinforce it in their heads.

[pchba7576030709]

definitely... i think it is a pretty interesting model. i don't know if it will work, but i think free music is worth a small amount of my time... a whole CD of 10 songs will take about 200 seconds or a few minutes of time and worth about $10 if you pay for the downloads - i don't make $10 every 3 minutes... so, simple math says this is a good deal for me!

[bobokane]

The technology at Funn Networks, not ALL MUSIC, will know EXACTLY who is requesting the content. Meaning, nobody would ever see the same eight second ad. Funn knows the difference between a left handed golfer and a right handed one for example. If they are a male or a female. Who lives in Australia or Florida. Funn will also make the ads and content available in 15 different languages. Ad's are product specific, not brand specific. (meaning more ad availability. actually millions more) All participating advertisers are also going to pay $$, besides the product discounts, for using their system. Bye bye competition. Bye bye You Tube, Hulu, DirectTV, etc.... :)
http://www.facebook.com/group.php?gid=39069696491

[solitare_pax]

Of course, what is there to keep someone from visiting the bathroom/kitchen/calling friends/whatever while a spleen-churning ad is mindlessly rolling away on a computer with the mute button on? Not much I would say - and someday, online advertisers may actually figure that out.

Just let me pay up front, and get my music from iTunes.

[karpenterskids]

Shhh...it's people like you who are cluing them in. ;)
Trust me, they read articles like this.

[jd_acker]

The same argument could be used against tv advertisements, yet companies still spend millions of dollars on them.

[rnailling]

Actually it's 15 tunes over one month--not three months. RN

[Sausagebiscuit]

I can see the ads now... on a children's website: "ijustfdurmom just downloaded "Pets" by Porno for Pyros sponsered by Trojan!"

[annanemas]

Sounds good for someone who would like to buy one full-length CD, or 10-20 songs, every month. If you only want 1 or 2 specific songs, however, most people will probably still pay 99 cents just for the convenience of iTunes or Amazon. With a good selection, however, this could be a good option where just a few minutes' worth of ads can save you $10 or $20. High-volume file sharers will never go for this because they've already found other ways to get what they want that are far too easy.

[johnb1--2008]

I think people use such a system as long as the adverts are varied and entertaining

[fcz1]

I'd do it. I'd even click a couple of feedback questions after the ad.
Virgin Mobile already does something similar by giving away airtime when you watch ads and rate them.

[karpenterskids]

Heck, I'd sit through a 3-minute ad if the conditions were right!

The things that would encourage me to do so would be:
1. Have a good selection of music to choose from (especially since the bands I listen to aren't all mainstream)
2. The ability to maybe download 30 or more songs per month (not a requirement, but would definitely be a bonus)

I just signed up for their mailing list, though, so I know when they've finally launched.
I'll give it a try, and see if it's worth it or not!

[SlowandLow]

Smells like a lawsuit coming. TurnItUp Media another company similar to SpiralFrog did the exact same model that these guys are trying to say is a new concept a year or so ago. Well maybe TurnItUp can get some money if they have patent protection. They can probably sue these guys for a hefty some for patent infringement. Like the others... these guys will crumble. History has a tendency to repeat itself.

Wake up and smell the coffee mates. Why get a 256kbps MP3 when so many other places have 320kbps.

Oh yeah not to mention services like http://www.beemp3.com where you can find almost any music for free.

Or perhaps it could be that they can just do what SpiralFrog did and get a bunch of users go out of business and then sell their users lists to every Tom, Dick and Harry of the Spam World.

I am sure the list goes on...

Here is a solution: Just stick with iTunes or Amazon... get the highest quality music and know it is safe and legal.

[dmksaved]

I would do it at home if i see the song on itunes and then see it for free from them . of course i would sit through the add watching my recorded show on my DVR, when a commercial comes on I would pause the tv , go download , mute my computer , fast foward through the commercials on my dvr , watch my show , next commercial break, i would then be ready to download the song, pretty easy .

[waynerifish]

If they had as wide a selection of music as Amazon or iTunes, then yes, I'd definitely use it.

[rnaoncfixd]

Why do I feel like this is just another way to get spy ware loaded into your computer? 'Course, that could just be me being paranoid.

[xim1970]

Sure, I'll do it so long as they will have music I will want to listen to. They'll have to act fast, though, as I would check it out once, and if the selection is crap, I won't be back.

[A41202813]

Why The Hell Not ?

[A41202813]

DRM Free, Right ?

[bobokane]

No its not new what they are doing but they're thinking is right on. As a matter of fact Funn Networks (see link http://www.facebook.com/group.php?gid=39069696491) started filing patent back in 1999 for the technology, only Funn Networks is taking what they think is unique and going to market with something ten times more powerful. They held back their launch for seven years waiting for people, content owners and technology to evolve to where it is today. Exec's in the entertainment industry called it a holy grail. They should have performed a better due diligence, especially where the intellectual property and filing dates were concerned, before raising some seed capital.

[SlowandLow]

I hear ya! That is the problem with copycats. They just don't think about repercussions. I guess the next story CNet will be posting is FreeAllMusic.com is sued.

[samreiner76]

Hey Bob, when is Funn going to get a website, product or service?

[bobokane]

Sam, we are looking at launching this summer worldwide. We are actually putting together an incredible, proactive board comprised of top pr people, music and movie industry personnel and much more. Thanks for the reply, we'll see you real soon!