Legal P2P Music Service QTrax Finally Up: Not iPod Compatible
QTrax, the long-delayed free music service, is finally launching. The service is supposed to go live at 12:00 am eastern Sunday, and the company will hold a press conference to discuss the launch a few hours later at the Midem music conference in Cannes.
QTrax is essentially billing itself as a legal, ad-supported version of the P2P services that are killing the music business. That's a tall order, and we are skeptical that the QTrax folks can make it work. We haven't tried the service ourselves, but the gist is this:
But all of those concerns are secondary. The big one: In order for QTrax to work, it has to provide users a service that's at least as good as the free P2P services. Right now, with an offering that doesn't let users play its music on the world's most popular music player, it isn't.
Update: WMG: We don't have a deal with QTrax
See Also: Free Music Service QTrax: Public Soon, Launch By Dec.; Dead By Spring?
QTrax is essentially billing itself as a legal, ad-supported version of the P2P services that are killing the music business. That's a tall order, and we are skeptical that the QTrax folks can make it work. We haven't tried the service ourselves, but the gist is this:
* Users will have to download a proprietary program, built on the open source Songbird platform. The program is QTrax's all-in-one search engine, player and revenue generator. You'll have to download songs via the software, and play them on the software, which is where the service will serve up display ads. It will give the labels about two-thirds of each dollar of ad revenue it generates -- essentially the same split that AAPL offers now for its download sales. If you're an anti-DRM fanatic, you can stop reading here - the downloads will have a DRM wrapper.There are plenty of other questions about QTrax. For instance, a public offering that was supposed to happen last spring, then last summer, then last fall, is still supposedly in the works. And the jury is out on how attractive display ads on music players will be for marketers. And we wonder how much cash and/or equity the company has spent getting this up and running -- other free services have had to make major concessions to the labels.
*QTrax says all four major labels are on board, but the labels says that's not the case. Warner Music Group (WMG) says it doesn't have a deal with the service, and a person close to the company says Universal Music Group, the world's biggest music label, is talking to QTrax but hasn't signed anything. If QTrax can't solve its licensing problem, everything else is moot.
*The service is PC-only, but QTrax says it will have a Mac version available by March 18th. It says its player will be allow you to import all of your existing music, including music purchased on iTunes or other services.
*The killer: QTrax songs can't be played on iPods, which means it's at best a complementary service for most people. QTrax says that will change "eventually", but since Apple has zero interest in opening up its closed system and has fought furiously against other attempts, we're not betting on it.
But all of those concerns are secondary. The big one: In order for QTrax to work, it has to provide users a service that's at least as good as the free P2P services. Right now, with an offering that doesn't let users play its music on the world's most popular music player, it isn't.
Update: WMG: We don't have a deal with QTrax
See Also: Free Music Service QTrax: Public Soon, Launch By Dec.; Dead By Spring?
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Due to overwhelming demand, Qtrax.com is currently unavailable. Please check back in 24 hours to download the first, free, and legal P2P music application. Thank you for your understanding.
http://www.alleyinsider.com/2008/01/warner-were-not-working-with-free-music-service-qtrax-wmg.html
As of now, the tracks are not compatible with the Apple iPod, but Klepfisz said that the service would be compatible with iPods in March.
“We’ve had a technical breakthrough which enables us to put songs on an iPod without any interference from FairPlay,” said Allan Klepfisz, Qtrax’s president and chief executive.
Klepfisz declined to give specifics on how Qtrax will make its audio files compatible with Apple devices, but noted that “Apple has nothing to do with it.”
Digital Media, Digital Music - Players January 27th, 2008
Qtrax to offer unlimited, free song downloads for Apple iPod users
Qtrax has announced that they plan to offer unlimited, free song downloads which would be compatible with millions of iPods out there.
The company is one of the many new ones which aim to use advertising to generate revenues while providing free media for download legally.
The latest version of their software application would also let the users connect to file-sharing networks to search for music.
The downloads would however include some form of DRM to prevent their duplication on CDs. Allan Klepfisz, Qtrax’s president and chief executive spoke about how they aim to make their media content compatible with Apple iPhone: “We’ve had a technical breakthrough which enables us to put songs on an iPod without any interference from FairPlay.”
Market analysts believe that this would not amuse Apple and they might take steps to block these media files from playing on iPods. Apple runs their own iTunes media store to offer tracks for play on the iPod players.
http://news.techwhack.com/7039/qtrax-ipod/
Steve and musicfan, QTrax parent company is an OTC/Pink Sheet stock, which means that reporting standards are minimal to non-existent. And the fact that the last set of reports is nearly a year old means that it's nearly impossible to see what they've spent on R&D, licensing, marketing etc. So they could be in ok shape or horrible Spiralfrog-like shape. If Qtrax does go public via a reverse shell deal, or a straightforward IPO, we'll get more clarity.
Peter (and Henry Blodget), what about that comment from @steve - you gents should know a thing or two about reading financials... I tried the service and the demo quality was soo bad, wont be going back to that site again.
who are these guys running the company? any run-down on the management (past the info on their website)? have you tried calling on the record labels to see what they have to say since this launch? All of them were at Midem too, but no one seems to have commented.
When you have a solution that launched with licenses from the major labels, and consumer has to download a client application, it would be good if the labels gave it a review. If the info by @steve is correct, then anyone loading up this client should think twice before trying it out. Who know what will land on your hard drive, especially if it is a P2P client.
Peter (and Henry Blodget), what about that comment from @steve - you gents should know a thing or two about reading financials... I tried the service and the demo quality was soo bad, wont be going back to that site again.
who are these guys running the company? any run-down on the management (past the info on their website)? has you tried calling on the record labels to see what they have to say since this launch? All of them were at Midem too, but no one seems to have commented.
When you have a solution that launched with licenses from the major labels, and consumer has to download a client application, it would be good if the labels gave it a review. If the info by @steve is correct, then anyone loading up this client should think twice before trying it out. Who know what will land on your hard drive, especially if it is a P2P client.
-The company has not filed a timely report with the SEC since its June 06 ending quarter.
-The latest 10QSB was for the quarter ending March 31, 2007
-Company has made $9,862 (that's nine thousand)dollars in revenue since inception in 1999. No revenues were made for the quarter ending March 31 for both years 2007 and 2006.
- Net loss of $1.25M for 3 months ending 3/31/07
-$52.4M net loss since inception
-Burn-rate was about $1.3M for the quarter ending 3/31/07
-Has $340K in cash as of 3/3/1/07.
That is a lot to make up for!
you seem to be workong for competition, because you bash Qtrax over and over again. Well qtrax is ipod compatible and can also be played on any portable player.