SoundTempest

Qtrax, initially a P2P network from the days of Napster, has run into some difficulties with the launch of its new digital music distribution service during the MIDEM conference in Cannes, France last weekend. Qtrax, which now deals exclusively in legal music, had promised a vast library of tens of millions of songs, thanks to “landmark deals” with the major labels. The key differentiating feature of the site is that said music is completely free to download (albeit not CD-quality, and protected with DRM), with an entirely ad-based revenue model covering the costs.

However, problems arose when all four major labels issued statements that they had not signed any deals with Qtrax. Universal, Warner, Sony BMG and EMI have all contradicted the claims of Qtrax that any sort of deals are in place for the distribution of the labels’ music. Allan Klepfisz, president of Qtrax, has acknowledged that the launch will need to be delayed as a result, but insists that the majors still support the service, despite the lack of formal agreements.

Additionally, Qtrax downloads are, as of now, incompatible with the Apple iPod. Though Allan has promised compatibility with the iPod without the help of Apple, technology analysts such as Rob Enderle are doubtful that compatibility will be achieved, as Apple’s FairPlay system of DRM is highly-guarded.

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Somehow, I am not really surprised that Qtrax has gotten a little ahead of itself. I heard about the site for the first time last week and was skeptical that any major label would sign on to an entirely ad-based revenue scheme that involved actual downloading, as opposed to just streaming. In fact, at the same time I heard about Qtrax, I also discovered SpiralFrog, another new site with the same premise - free downloads supported by ads. SpiralFrog has not officially launched yet either, but already, top management is jumping ship, possibly because they have only managed to gain support from a single major label, Universal. Hey, I’d feel uncomfortable too making all of my music entirely free and just crossing my fingers that advertisers will pay enough money to make up for it.

Even setting aside the issue of major label support, the problem here is that I don’t think people are really interested in being bombarded with ads so they can download mediocre-quality, DRM-protected music that won’t work with their iPod. Amazon already offers DRM-free downloads at dirt cheap prices, and iTunes certainly has had no problems making billions of sales. Last.fm’s recent announcement covers all the people who don’t feel like paying but just want to check out a few tracks here and there. Is there really a market for something like Qtrax?