La La CD trading
La La Media has raised $9 million US from Bain Capital and Ignition Partners. La La, located in LA, will set up up a music CD swapping service, similar to Peerflix, which distributes movie DVDs. Users will pay $1.49 for shipping and La La fees. The company projects that the majority of its revenues however will come from selling new CDs and is exploring selling digital downloads.
La La is making a smart run at being a niche market leader. I don't expect CD swapping will be a mass market or achieve the level of success of the video market. La La is competing against P2P, free and paid digital downloads, free streaming, unlimited subscriptions, and a plethora of major online CD retailers from both Internet-only and brick and mortar stores.
But the swapping twist should find its own market and make it an attractive acquisition for a major entertainment company in a few years.
August 21st, 2010 at 2:03 am
free and paid digital downloads, free streaming, unlimited subscriptions