Go LaLa For Used-CD Venture

[vansmack]

Anybody doing this yet?
 
 
 March 07, 2006, 11:00 AM ET
 Bain, Ignition Go LaLa For Used-CD Venture
 
 By Brian Garrity, N.Y.  
 
 Warner Music Group financial backer Bain Capital and Ignition Partners have invested $9 million in lala.com, a used CD and e-commerce business that is applying a Netflix-meets-MySpace concept to trading second-hand albums.
 
 Users of the site, currently in beta, can list CDs they own and create a wishlist of titles they want. They then exchange CDs through the mail in pre-paid envelopes that the company supplies to all registered users. The company does not support trading of burned CDs. Any user reported to be distributing burned discs will be banned from the site.
 
 Members pay a shipping charge of $1 for every disc they receive. There is no charge to users shipping discs.
 
 The prospect of a social networking site that allows music fans to swap their CDs among each other free of charge is raising eyebrows in music industry circles. However, executives at Palo Alto-based Lala claim that the venture is legit.
 
 Company co-founders, Billy Alvarado and Anselm Baird Smith maintain that the business model is covered by the first-sale doctrine -- an exception to the U.S. Copyright Act that allows consumers to sell or give away CDs they have purchased. They also believe the site will expand legitimate sales.
 
 If an album is not immediately available for trade, members can buy the CD new or as a digital download through Lala.
 
 "Trading CDs is an affordable way to experiment and try new music," says Nguyen, "but when you find that album you can't wait to enjoy, we offer it as a new CD or as a download and often, with additional bonus material at retail price." In an effort to curry favor with the music industry, the company is pledging to give 20% of its revenues to artists. It has been not been determined which collection societies Lala will work with.
 
 http://www.lala.com/
 
 If you are part of the Beta, kindly send me an invite: vansmack@msn.com

[Jaguar]

Wait a minute. Didn't Kosmo try to start something like this a couple years ago? Or was that someone else that I know in another corner of cyberspace? From what I know of, it never went anywhere but, conceptually speaking, it is a good idea. I'm not sure how it will work as a business model though.

[kosmo vinyl]

I tried this informally a couple years back, but no one took the bait... not quite sure what sets this apart from eBay, Half, etc other than the artists get "20%" of the sales price.  Djangos has a good online CD service.  and as someone points out on Coolfer's blog this idea came and went awhile back with ShareIt.  Plus, telling people to delete MP3s after sending on the CD, is going draw attention from the RIAA.  And the RIAA is trying to turn heat up on the legality of copying files to iPods.
 
 Of course why buy used when all you need to is wait for one of those high priced record store chains to start closing stores with 40% off sales.

[vansmack]

Got me an invite.  Here are the details:
 
 How It Works
 
 Trading made easy...
 
 As a 'la la' member, you can trade the CDs you have for music you really want. Trading CDs through 'la la' is easy.
 
 Start by picking CDs you want and listing the CDs you have.
 
 'la la' finds members that have the CDs you want. Members ship CDs directly to you.
 
 'la la' also notifies you when members request the CDs you have. The number of CDs you receive will depend on how many CDs you ship to other members.
 
 Experience 'la la' for free!
 
 Registering for 'la la' is FREE! You can browse member collections and playlists, search for specific artists and albums, or sample 'la la' recommendations. There are no upfront commitments.
 
 Pay only $1 for CD!
 
 Once you decide to start trading, you pay only for CDs received from your Want List. There are no hidden costs or monthly fees. Every CD you receive costs only $1 plus a standard shipping charge of $0.49. The number of CDs you receive will depend on how many CDs you ship to other members.
 
 List with no obligation - you're in control!
 
 You're NEVER obligated to ship CDs in your Have List. When someone requests one of your CDs, you decide if and when to ship the CD. The more you ship, the more you get.
 
 Easy Shipping
 
 'la la' provides you with stamped envelopes, so all you need to do is drop your CD in the mail!
 
 You never pay anything to send CDs.
 
 Your first shipping kits will arrive 3-5 days after you complete registration.
 
 'la la' guarantees quality
 
 'la la' guarantees its members' satisfaction. If a CD is not received in good condition, we will credit your fee and make it a priority to fulfill your request.
 
 'la la' is legal
 
 Like any used CD store, 'la la' is 100% legal!
 
 Every CD you receive from other 'la la' members is yours to keep. Also, since we don't condone pirated music, only original CDs are being traded.
 
 'la la' is fair
 
 'la la' is based on trading. All members ship CDs in order to receive others. The more music you list, the better your chances are of receiving the music you want.
 
 Cancel at any time
 
 You can cancel your account at any time.

[kosmo vinyl]

hmmm this might actually be something worth trying out.. i have a number of cds that are duplicates between kosmette's and myself that aren't going to bring in big bucks selling but might be of interest for trading... can you spare an invite?

[vansmack]

Originally posted by kosmo vinyl:
 can you spare an invite?

I'm not authorized yet, but as soon as I am you'll be getting one.

[kosmo vinyl]

smackie provided the hookup i'm going to give this one a whirl.  given that most used shops don't give more than $4 to buy a cd and then turn around to sell for twice that. being able to swap a little listened to cd for a one i want for $1.50 and Netflix ease is worth giving a shot.

[vansmack]

It's going to take forever to add my collection - I'm just going to click the "Have" link as I see albums I have.  Thus far, I'm liking the interface, but have yet to ask for or offer a CD.  Maybe this weekend.
 
 It's kind if cool how they prioritize who gets what.  The more you send to others, the quicker you get what you want.  It also seems ripe for copying and moving on.
 
 There is also a similar DVD model: http://www.peerflix.com/

[vansmack]

When you add an album that you don't want to share, immediately mark that you don't want to give up your copy.
 
 I added about 75 Cd's yesterday and was flooded with emails telling me that my CD was requested by a member.

[kosmo vinyl]

Well so far for a rarely listened to Bright Eyes CD, I will be getting BMRC, The Darkness, and Green Day. Don't mock my need to rock, or else I'll post your screen name on some wall somewhere.  
 
 Wonder what their policy is towards swapping CDs that are labeled as Promo, Not For Sale.. got some of those cluttering up the joint someone might want. Will email and findout..

[Bags]

Wow, I think this could work for me as well.  After I moved, my CDs are all in boxes and simply get shuffled around.  
 
 Smackie's point, though, is a good one -- getting your list up!

[nkotb]

I requested an invitation yesterday and already received one.  Thanks for the info, smackie!

[Bombay Chutney]

Originally posted by vansmack:
  When you add an album that you don't want to share, immediately mark that you don't want to give up your copy.

Maybe I don't understand this very well, but why would you even bother listing cds that you have, but don't want to give up?

[kosmo vinyl]

i would think it's so you can be linked to people with like minded musical tastes and then see what they would have on offer and spark interest in "swaping" for.  maybe they need three lists, owned, trade and want...

[vansmack]

Kosmo, any update?  I received the sleeves and dropped one in the mail.  Have you received any?