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Music Labels say No Deal with Qtrax

mikesd81 writes "Sunday we discussed apparently great news: a company announced making a deal with the major labels to provide DRM-free, ad-supported music. There's just one problem with that. Reuters reports that the Big 4 music labels have denied having any deal with Qtrax. Contrary to Qtrax's reports, Sony BMG Music Entertainment and Warner had publicly denied that they had agreed to back the new Qtrax service. Universal Music, the largest of the group, said it also had not signed a deal for the new Qtrax service and is still in discussions. EMI Group said that while its song publishing unit has an agreement with Qtrax, its recorded music arm, EMI Music, does not. EMI Music, Sony BMG and Warner all previously had agreements with Qtrax, which was testing a paid music download service. Sources say those agreements expired in the last year and did not cover the new free, ad-supported model now being promoted by Qtrax. Qtrax did not immediately respond to further queries about its agreements with other companies."

58 comments

  1. it sounds like the only thing Qtrax has by thrillseeker · · Score: 4, Funny

    is audio of a fat lady singing

  2. Qtrax is a hoax to gather e-mail addresses by lemmen · · Score: 4, Interesting

    According to Dutch "shock-log" Geenstijl it seems the software is only being used to gather e-mail addresses and not downloading music. View the story at http://www.geenstijl.nl/mt/archieven/1181231.html

    1. Re:Qtrax is a hoax to gather e-mail addresses by Viper+Daimao · · Score: 1

      Het leek te mooi om waar te zijn en dat is het ook. Gratis en legaal 25 miljoen muzieknummers downloaden, dankzij advertenties. De service van Qtrax werd met veel tam-tam aangekondigd, want Qtrax beweerde legaal bezig te zijn en contracten te hebben afgesloten met vier grote platen maatschappijen well that clears things up!
      --
      "In the game of life, someone always has to lose. To me, if life were fair, that someone would always be Oklahoma." -DKR
    2. Re:Qtrax is a hoax to gather e-mail addresses by Viper+Daimao · · Score: 1

      And just to prove I'm not all snark, Here's a google translation of it.

      --
      "In the game of life, someone always has to lose. To me, if life were fair, that someone would always be Oklahoma." -DKR
    3. Re:Qtrax is a hoax to gather e-mail addresses by default+luser · · Score: 1

      Bjork renuf murhatten ple flucided gunhru lassetr. Me heigt juden operean fuerean glotten furbern ti gent.

      --

      Man is the animal that laughs.
      And occasionally whores for Karma.

  3. I think all my music by antifoidulus · · Score: 3, Insightful

    is DMR free, and I intend to keep it that way :P

    1. Re:I think all my music by morgan_greywolf · · Score: 2, Funny

      Yeah, seriously, why DMR going around inserting himself into music anyway? Can't he just stick to his Plan 9 stuff?

    2. Re:I think all my music by antifoidulus · · Score: 1

      Wow, an insightful post that was mocking a typo..... brilliant!

    3. Re:I think all my music by Anonymous Coward · · Score: 0

      >22222222 is FAILGET

  4. Meanwhile by phobos13013 · · Score: 3, Interesting

    Last.fm has... so the floodgates may not have been opened, but they are letting the light shine through. Just enough to draw the masses... will they then slowly close back the doors and raise rates, or will they let us bask in the very limited glow? The current Last.fm deal is only a beta, once it's over, the music is only free for download or listen with a subscription. Meh, sadly even I can't complain at this point. I always said I would never pay for downloaded music, and to this day I have not, but perhaps its just too convenient and a good model to pass up. Especially with all the perks Last.fm provides....

    --
    ...and it should be known by now
  5. It's as bad for the RIAA tahn QTRAX... by Chabil+Ha' · · Score: 3, Interesting

    It seems to me that this is egg in the face of QTRAX, but quite telling of the recording industry as a whole. It seems that if they want to turn the proverbial ship around as far as their business model, it would seem that they would be willing to try a lot of new things, hoping to refine a business model to the point where they're making the profits they once enjoyed.

    With the failures of all these 'attempts' to reach out to consumers, it seems to only weaken consumer's expectations of what a music experience should be. I think QTRAX failure is one equal, if not greater, to the failure of the industry to innovate.

    --
    We're all hypocrites. We all have hidden parts, it's the contrast between them that make us more a hypocrite than others
    1. Re:It's as bad for the RIAA tahn QTRAX... by Anonymous Coward · · Score: 1, Interesting

      > I think QTRAX failure is one equal, if not greater, to the failure of the industry to innovate.

      Or just maybe it was a scam.

      Some people will take any allies, I guess.

    2. Re:It's as bad for the RIAA tahn QTRAX... by Anonymous Coward · · Score: 0

      It seems that if they want to turn the proverbial ship around as far as their business model, it would seem that they would be willing to try a lot of new things, hoping to refine a business model to the point where they're making the profits they once enjoyed.

      They are looking to turn the ship, but in the process they are running aground. They are looking for the deep water at a buck a song. Advertiser supported downloads pay closer to a penny a song. It isn't what they are willing to dock with. They would rather have nothing than have average selling price erosion.

    3. Re:It's as bad for the RIAA tahn QTRAX... by Chabil+Ha' · · Score: 1

      For the time being, I'm going to operate under the assumption that it is not. It seems to me that if it were a scam, it would seem that the labels would have come out with stronger language than 'we don't have a contract with QTRAX'.

      I would ere on the side that QTRAX started blitzing before anything final had been secured.

      --
      We're all hypocrites. We all have hidden parts, it's the contrast between them that make us more a hypocrite than others
    4. Re:It's as bad for the RIAA tahn QTRAX... by nomadic · · Score: 1

      It seems to me that this is egg in the face of QTRAX, but quite telling of the recording industry as a whole. It seems that if they want to turn the proverbial ship around as far as their business model, it would seem that they would be willing to try a lot of new things, hoping to refine a business model to the point where they're making the profits they once enjoyed.

      True, but I don't think free, ad-supported music would be that business model. You just don't get the kind of revenue off advertising that they want; witness all the ad-based dot-com failures. For every Google there are a hundred sites that can't make ads work.

    5. Re:It's as bad for the RIAA tahn QTRAX... by ZachPruckowski · · Score: 1

      hoping to refine a business model to the point where they're making the profits they once enjoyed.

      The RIAA can never return to making the profits they once enjoyed. Even if piracy vanishes tomorrow, the shifts in the broader entertainment market in the last 8-10 years completely preclude that. They can no longer sell a $18 CD next to a $10 DVD. They can't sell crappy filler bundled with hits when customers can buy "just the hit singles" for $1 a pop. They can't go back to forcing people to "re-buy" music every few years. With production costs falling, they can no longer force bands to sign with them to create a quality CD. With the rise of alternative streams of music recommendation, they can't go back to the days of using a stranglehold on the radio stations to push their top hits (admittedly, this still exists, but its effect is weakening).

      The changes in the entertainment market as a whole have altered what the music industry can get away with. As a result, the days of the profits they once enjoyed are gone. That's not to say that they can't profit if they shape up, but they have to accept that those 1996 levels of profit aren't coming back.
    6. Re:It's as bad for the RIAA tahn QTRAX... by Jeff+DeMaagd · · Score: 1

      They can't go back to forcing people to "re-buy" music every few years.

      They never had it like that. It wasn't more often than once a decade, and most music isn't and wasn't worth rebuying anyway.

  6. If it's too good to be true by techpawn · · Score: 1

    As much as we'd love to see an uprising like this for "free" music or more directly fan supported. Sadly, this reminds me of hearing about early days of low key p2p software that's loaded with so much spyware that while you get "free" games/music/software you're losing all personal data.

    Remember kids, in the English language, things can be spelled the same and mean different things. Track might mean music or may mean follow

    --
    Ask not what you can do for your country. Ask what your country did to you
  7. DMR free? by Chapter80 · · Score: 0, Redundant

    Hopefully, music will be DRM free, too, not just DMR free!

    1. Re:DMR free? by Anonymous Coward · · Score: 0

      No Dave Matthews Recordings? Sign me up!

  8. Sketchy by OneMHz · · Score: 4, Interesting

    This was either a move by Qtrax to generate a burst of ad revenue from an influx of users or they're trying to force the labels' hands by making the announcement. So, when the customers ask why the music isn't there, they're asking the labels, not Qtrax. Either way, it's sketchy.

    1. Re:Sketchy by badasscat · · Score: 4, Insightful

      This was either a move by Qtrax to generate a burst of ad revenue from an influx of users or they're trying to force the labels' hands by making the announcement.

      The real question in my mind is why nearly all of the mainstream press played along. QTrax obviously blasted out a press release, and without doing any fact-checking at all it seems like the story was reprinted on Reuters, the AP, CNN, MSNBC, the Drudge Report, and of course Slashdot, among others.

      Not that media manipulation is anything new, but it is still a constant source of amazement to me when a company like this that is obviously just a big scam - not to mention nothing new even if it was real (anyone remember SpiralFrog?) - gets such immediate and widespread positive press among both mainstream and hardcore news outlets.

      If you ask me, the news orgs have more egg on their face than QTrax does.

    2. Re:Sketchy by ZachPruckowski · · Score: 2, Insightful

      (This is a not a defense of the news media, who generally suck. This is an attempt to identify a problem) The problem is two-fold:

      1) In Internet media, you want to be FIRST. Having "the scoop" or being "first on the scene" is what differentiates 3-5 equally poorly written news-blogs from each other. Then when you have a dozen sources reporting on a story, more respectable places might pick up on it simply because there are so many sources, and they suddenly feel left behind. After all, with a dozen people reporting it, they can't all be wrong, right?* Sites like Reddit and Digg are based almost exclusively on headlines or blurbs, so people "vote them up" without reading the part about "no comment yet from the music industry".

      2) In the "mainstream" media, there's not a lot of understanding of technology issues. They probably get a million press releases a day, and write about the ones that sound cool. A lot of them probably devote a column below the fold on the 3rd page of the technology section (or 5 minutes of a mid-day broadcast) to it. They don't understand it, but they need to fill time/space, and they have a peripheral comprehension that it might one day be a big deal. And services like the AP and Reuters write up a lot of stuff. They got a press release, found a few sources to back it up*, and then they had another technology story for subscribers to reuse. They probably took any "no comment" from the music industry as a "we don't comment before official launches" thing, or something.

      * - This is a symptom of the rate at which information spreads on the Net. Normally, with multiple independent sources reporting something, it means they've down their own research. On the Internet, it may well mean they read the same blog and had different takes.

    3. Re:Sketchy by Anonymous Coward · · Score: 0

      Not to mention the fucking BBC. I woke up to a full segment on the wonder of QTRAX, complete with an "industry expert" who predicted that this was the death of iTunes. The whole thing sounded fishy to start with (I don't see the money-grabbing recording pigs going for it), and when they said they had struck a deal with Apple to put their music on iPods, I *knew* they were talking bullshit.

      Idiots.

    4. Re:Sketchy by Anonymous Coward · · Score: 0

      "They issued a press-release, so it must be true."

  9. Deal or No Deal by PirateBlis · · Score: 4, Funny

    In a recent interview, Sony Spokesperson, Tom Luciano, had this to say: "We're not in any agreement or approval of Qtrax. Mainly because we have a similar product that we're already releasing to the public, aptly titled Rootkit."

  10. Shady negotiation tactic by Anonymous Coward · · Score: 0

    So... at best they said "we have deals with all the other labels, why not you [EMI/sony/whatever]?" to try and convince the particular label they were negotiating with to come onboard?

    Yeah, I'd not even give them that much credit.

  11. Wait! Someone in the music industry LIED???? by Nova+Express · · Score: 0, Redundant
    I'm shocked, shocked I tell you!

    --
    Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)

    http://www.lawrenceperson.com/

  12. Is it still relevant? by Phoenix666 · · Score: 1

    Seems like most of the music the labels own that's worth anything is decades old (Led Zep, Beatles, Stones, what have you). Anyone who likes that sort of thing has had 30 years of mixed tapes and 10 years of P2P to get the MP3 track they can play in their iPod.

    Anything newer than that is manufactured boy bands and Debbie Gibson ahem Tiffany ahem Britney Spears, the music that only a pre-pubescent teen can listen to.

    Trouble is, the pre-pubescent teens are the ones who've been most alienated by the RIAA and the ones who are the heaviest users of P2P.

    So the question is, does anyone still really care what the labels do anymore?

    --
    Do what you can, with what you have, where you are.
    1. Re:Is it still relevant? by mikesd81 · · Score: 1

      Now c'mon here! Newer bands, like Fuel, 3 Days Grace, Breaking Benjamin, Disturbed....yup, they're boy bands alright.

      --
      That which does not kill me only postpones the inevitable.
    2. Re:Is it still relevant? by absurdist · · Score: 2, Insightful

      Oh, please. Show me anyone current with the creativity and originality and just plain fucking weirdness of a Frank Zappa, Captain Beefheart, or Zoogz Rift who has a snowball's chance in hell of being signed by a major label in 2008.

  13. Has anyone downloaded their software? by Albanach · · Score: 1

    So, has anyone downloaded their software? Are they serving up content without an agreement with the music publishers? Or was the press announcement a big scam and there is no 'free' music?

    1. Re:Has anyone downloaded their software? by Larry+Lightbulb · · Score: 1

      There's no free music - you can use the client to play the audio you've already got, and can see what they claim to have, but that's as far as it goes.

    2. Re:Has anyone downloaded their software? by wuzfuzzy · · Score: 1

      SkreemR is builtin to the client and DOES download just fine :)

  14. I'd like to be the first to say... by MrNemesis · · Score: 4, Interesting

    ...pump'n'dump, but someone's bound to have gotten there before me. How much do you bet this whole thing was planned from the start?

    http://blogs.cnet.com/8301-13526_1-9859255-27.html

    There's someone pimping the stock in the comments there. Oddly enough, the site he links to is an analyst firm with a front page consisting entirely of... Qtrax pimpage http://www.positionmakers.com/

    Mmm, smell the astroturf.

    --
    Moderation Total: -1 Troll, +3 Goat
    1. Re:I'd like to be the first to say... by MrNemesis · · Score: 1

      Whoops, forgot the stock ticker link.

      http://finance.yahoo.com/q/bc?s=BLLN.PK&t=5d

      Does anyone who actually uses stocks know where you can find out who the key traders are/were?

      --
      Moderation Total: -1 Troll, +3 Goat
  15. I downloaded QTrax... by PinchDuck · · Score: 4, Interesting

    and was amazed to find that it was Songbird. And though the GPL was prominently acknowledged, there was also a part of the licensing agreement that says I won't distribute the downloaded client. I'm pretty sure that the stipulation is a violation of the GPL in the first place, in that you aren't allowed to place any downstream restrictions on GPL'd software. You can view their catalog, but you can't play it and can't download music. So they have no music, their client (as far as I can tell) is distributed using a license already in breach, and the only ad I ever saw was for a samsung telephone. Their server completely crapped out last night. Continuing their tactic of marketing one piece of software as another, the broken server claimed to be an Oracle web server, but the error message sure as hell looked like it was generated in Apache. Yeah, I know that the BSD license allows that, but it made me chuckle. I think QTrax is going to go away very soon.

    1. Re:I downloaded QTrax... by 68kmac · · Score: 3, Informative

      They apparently licensed Songbird properly. So at least that bit isn't shady ...

    2. Re:I downloaded QTrax... by Anonymous Coward · · Score: 0

      Songbird isn't GPL. It's MPL(+optional GPL and LGPL clause) like Mozilla Firefox and MPL does allow this. Just For Your Information :-)

    3. Re:I downloaded QTrax... by Chris+Mattern · · Score: 1

      It's a licensed fork of a GPL project--unless the fork happened *before* the code was GPL'd, they don't get to restrict redistribution, and the owners of Songbird did not themselves have the right to let QTrax restrict redistribution.

  16. RIAA turn ship around ? Why, they own the seas. by Shivetya · · Score: 0

    I know its considered "in" to bash the RIAA or predict their impending doom but lets face it, they control the majority, if not super majority, or music. As such it isn't their ship that floats or sinks, they own the ocean. Its all the resellers who are ships on that ocean and its the RIAA who decides who sinks or swims.

    Continuing on that analogy, indie music and bittorrent are below the surface, not nearly dangerous enough to threaten the commerce on the RIAA's sea. Yeah we like to talk as if thats not the case but it sucks that its true. Buying from iTunes simply feeds their coffers. Buying from Amazon is the same. Hell, buying products advertised on radio indirectly supports them.

    They can afford the mistakes, you can't drown in the sea when you are the sea. Its the other parties experimenting who are threatened. Regardless of which takes off unless the RIAA and studios give up their rights theirs is the base from which everyone else comes from.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  17. Not Surprising by BanjoBob · · Score: 3

    The big 4 labels ALL decided to pull the plug at the same time? Circumstantial? NOT. This is just another way that the labels and keep themselves and artists from making any money. How many billions of dollars has the music industry thrown away because they adamantly refuse to monetize music on the Internet? After all, it was a computer company -- Apple, that figured out the model and made it work. The music cartel had absolutely zero to do with that and, in fact, were the ones who tried to kill the entire idea. So, is anybody really surprised that they would try and kill this too?

    --
    Banjo - The more I know about Windoze, the more I love *nix
    1. Re:Not Surprising by jrumney · · Score: 1

      The big 4 labels ALL decided to pull the plug at the same time?

      The way I understood things, there were never any plugs to pull. They didn't have the agreements in place that they claimed at launch. The claim of future iPod support when they'd based the whole system off WMA DRM should have tipped people off that perhaps there was less to Qtrax than met the eye.

  18. The many posters who said it sounded fishy... by dpbsmith · · Score: 1

    Many posters commented yesterday that the whole story didn't make sense... particularly the curious vague comments about Apple and iPods.

    The many posters who said it sounded fishy were all correct!

  19. Wow, that was some pump and slump by Rogerborg · · Score: 1

    Look, their owning company's stock price hit almost 9 1/2 cents a share yesterday!

    --
    If you were blocking sigs, you wouldn't have to read this.
  20. How To Get LIcensed Music Playing In Q-Trax by szyzyg · · Score: 1

    This is my experience, but I did figure out how to listen to music from the major labels using the q-trax application
    1) Once I'd got Q-Trax running I try going to the home page using the home button
    2) I get repeated errors but eventually get the qtrax page up with a search box
    3) Search for something I want to listen to
    4) More failures, but if I was persistent yenough and got a load of track titles with info, ratings and download buttons
    5) find something you like and hit the download button
    6) again more errors, but eventually I get to a page with more detailed track info and no download link
    by now a good 20 minutes has passed and no music has been forthcoming
    7) Open a new tab in the browser window
    8) Type in 'http://www.imeem.com' and go to a site which actually has all the music I want to listen to (although I did need to have an imeem account)

    If you don't have an imeem account but have a last.fm account you could always go there, but you'll have a smaller selection of tunes and a 3 stream limit, but even that beat the pants of Q-Trax right now

  21. That sound you here... by MattW · · Score: 3

    is millions of bittorrent clients firing back up. Good work, record labels.

  22. No, this is a good thing by polyrhythms · · Score: 1

    I was horrified to read the initial articles about the major labels making deals with Qtrax. Granted, labels see music as nothing more than a way to entice the masses to buy product, but at least one of these products was the music itself. Had they agreed to Qtrax's model, they would have effectively said that the music they provide has no direct value. It's only value would have been as a way to motivate people to view online ads.

    As a composer in a progressive rock band who has spent upwards of $30,000 of our own money to produce our latest album, the music of which took five years to write, 1 year to rehearse and 2 years to record (yes, the music is that intricate and difficult), I take offense to this perspective. This album means a great deal to me. As the writer, I feel that it's my greatest artistic achievement. I'd like to believe that it has some intrinsic value - maybe not to everyone, because I'm well aware that progressive rock is a niche market - but hopefully to some.

    However, if the major labels allow their music to be downloaded for free, most people will come to expect that all music should be free, so long as they're willing to tolerate advertising. Despite the fact that my band will not be selling out in this fashion, people would still expect free downloads of our music. But how could we afford to do that? We would be stuck. Our only choices would be to allow our music to be used to sell advertising or quit producing music.

    Given this scenario on a larger scale, the only new music we'll hear are from those artists who are willing to sell out to this extent. I don't know about you, but I have no interest in listening to such music.

    1. Re:No, this is a good thing by default+luser · · Score: 2, Informative

      Had they agreed to Qtrax's model, they would have effectively said that the music they provide has no direct value. It's only value would have been as a way to motivate people to view online ads.

      As if this is any different from how the rest of the world works.

      Radio stations that play your music make their money by - you guessed it - ADVERTISING! So do most television stations. While there are "viewer-supported" TV and radio stations, even these are guilty of weaving limited amounts of ads into their broadcasts.

      Ads and music are hardly strangers. Of course, we as consumers get the opportunity to PAY to get to listen to your music whenever we want, without commercials. We currently have only three different tiers for the marketplace:

      Tier 0: radio broadcasts, free.
      Tier 1: pay-per-track via online purchasing, cheap.
      Tier 2: full album purchases, either online or via CD. More expensive.

      Are you telling me there's not room for another tier between 0 and 1, where people get to listen to music all they want in exchange for more invasive advertising and usage stat collection? I would personally like such a service, despite the fact that I buy dozens of CDs a year, because it's an opportunity to sample the album in high quality. To do this right now, you either have to break the law or put up with short clips / poor Youtube recordings.

      And finally, if your band is so unique, I don't suppose you'd be proud enough of your work to tell us the damn name? I happen to enjoy prog rock.

      --

      Man is the animal that laughs.
      And occasionally whores for Karma.

    2. Re:No, this is a good thing by nebenfun · · Score: 1

      More invasive advertising? Collection of user data by a "questionable" third party?

      Isn't this exactly the sort of behavior we despise from companies?

    3. Re:No, this is a good thing by polyrhythms · · Score: 1

      Well, the only radio station that played our music is commercial free, but otherwise your points are valid. And yes, I see room between your tiers 0 and 1. Maybe my hangup about the whole thing was the way the original Qtrax articles were written. It seemed that they perceived music solely as a means to get people to view their online ads. But you're right - most media that would be willing to play/stream our music needs to generate revenue somehow.

      Nevertheless, from what I've seen, I still don't like Qtrax. One major problem is that I couldn't find a way to upload my band's music. Another problem is that I don't see any specifics on how much the artists are getting compensated.

      On the other hand, I just registered my band on last.fm (actual music is forthcoming). It's a much better model in that the artist has more control over what can be streamed, downloaded, etc. Still no specifics on compensation, but I suppose we'll find out.

      Anyway, thanks for the input. If you're interested in my band, check out our Web Site or MySpace Site (which is a little more up to date). Our first CD is still available on CDBaby, but we're working on breaking up the 39 minute opus into more reasonable, downloadable chunks.

    4. Re:No, this is a good thing by default+luser · · Score: 1

      Hey, sounds pretty good. Rush meets Shostakovitch meets Genesis, just as advertised. I picked up the album on CD Baby, this one is good enough to buy.

      I've noticed talk of a new album on your website dating back to 2005 (Prometheus has a 2001 release date on it). Is this going to be released soon? Also, do you play any live shows?

      --

      Man is the animal that laughs.
      And occasionally whores for Karma.

    5. Re:No, this is a good thing by polyrhythms · · Score: 1

      Hey, thanks for the support and kind words! Shostakovich is one of my favorite composers. His string quartets inspired some of the work on the new album. Speaking of, it is recorded, but we're waiting for technical issues to get resolved before we mix. We're probably looking at a May/June release.

  23. The Math by EdIII · · Score: 1

    The more I think about this, the more I conclude that it could never happen. Ad Supported Music cannot satiate the financial needs of Big Entertainment.

    We already know that Big Entertainment is pissed at Jobs and they want competition. Amazon's DRM-FREE music should show that intention, or capitulation. I have heard many times that they HATE the 99c per track on iTunes. So I think this really might be about the money.

    Feel free to point out any logical flaws here, but these are my calculations (All of them found by Googling a little bit):

    1) A 30-second spot during the Super Bowl (2008) could go for as much as 2.6 million dollars on the high end. In 2006 there was an estimated 90.7 million people watching.
    2) Based on that information, that is 86,666$ per second for 90.7 million people.
    3) Lets just round that off to 86K for 100 million people.
    4) We are talking about 8% of a PENNY per person per second.
    5) Assume an average track length of 3 minutes, with banners all over the page and a 30 second delay for a video advertisement.
    6) That would be approx. 7.8c per track that the advertisers are paying for. An additional 2.6c for the 30 second video advertisement.

    Some more assumptions:

    1) All of this is in Super Bowl commanded advertising prices. QTrax must present a venue as attractive to advertisers as that.
    2) Big Entertainment gets 100% of the advertising dollars. Obviously not possible since QTrax would make no money at all, but lets work with that.
    3) QTrax is no different than iTunes, in that a user can choose to listen to only a track, and not the full album.

    Now I also realize that somebody may listen to a song more than once, but you can look at that as an additional track "purchased".

    Does Big Entertainment make enough money at 10c per track to satisfy their desires for huge profits? I had heard, and cannot confirm anywhere with Google yet, that Big Entertainment got over 20 billion dollars in sales recently. If QTrax has to have each user listen to a track 10 times, assuming they would put up with the 30 second advertisements that long, to equal a single iTunes purchase can they deliver the profit?

    Advertisers have other venues that are less expensive then this. I also wonder if QTrax could capture that much of the advertising market to deliver enough profit to Big Entertainment to keep them happy. After all, theoretically, somebody that is using QTrax is less motivated to purchase tracks through iTunes or Amazon since they have free playlists all day long. Which means QTrax could start eating into Amazon and iTunes sales. That assumes that people will flock to QTrax and LOVE the advertisements so much they will stay and listen all day long all the time.

    I am seriously confused how QTrax is going to allow the songs to be downloaded to the iPod as well. How do you keep advertisements flowing on that device? The iPod is important, since people do not sit and listen to music all day long. They are on the move. QTrax is otherwise stationary.

    The actual amount advertisers are going to pay could be a heck of lot less. I think I painted a rosy picture for QTrax. All in all, I must be missing something, or am I right that this kind of business model is doomed to fail?

  24. Oh yes, spiralfrog by mackermacker · · Score: 1

    Sure, who doesn't remember them? In fact, the former CEO is the primary consultant working with Qtrax according to the press release: http://www.news.com/8301-10784_3-9711371-7.html

  25. Hmmm!!!! by satellitenetconnect · · Score: 1

    From the webmaster, I want to make money side, I say that it was probably a very good stunt for Qtrax to do that. Think of all the damned money they made from 1 night of nobody being able to download music. If you try to download a song, it says downloads coming soon. That is when the server was up. But yet, the ads were still there. At one point there was 12,000+ people on this morning. I believe that out of that, there should have been quite a bit of commission to be made by Qtrax. Good publicity stunt. I may have to get in on that band wagon myself. ;P Ignorance is bliss....Why am I miserable?

  26. qtrax screwed investors too by Damn+Girl · · Score: 1

    Stock price was up, big profits, big expectations, and great times for the board of qtrax. Everything was going fine until the labels piped up and said: "No wait, wtf are you saying Qtrax? We didn't agree to anything at all! Don't tell everyone we're with you." Then BAM. Stock prices fell like a fat guy whos cankles finally gave out. Only winners here are the insiders that sold their stocks before everything went down. Go qtrax for fraud http://www.latimes.com/technology/la-fi-qtrax29jan29,1,6460500.story?ctrack=1&cset=true