LaLa.com is a startup that is currently running in beta. It takes some Netflix ideals, smashes them up with a little bit of Half.com, and they have a service that will allow the trading of CDs through their marketplace. Users sign up and list some of their CDs that they are tired of. They send them off to people who would like them, using LaLa's prepaid envelopes. They earn credits so that they can request discs from other LaLa users.
There is a $1 transaction fee per trade and an additional $0.49 fee for the envelope. So, at the end of the transaction, you have traded an old CD that you presumably did not want any more, for another disc at a total cost of $1.50.
It sounds simple and perfectly legal, but there are some logistics and legalities that will probably come into play. First of all, if you trade a disc away to someone else, it is your responsibility to delete any additional copies of the music that you might have made legally when you were the owner. For example, if you have a ripped MP3 on your hard drive or MP3 player, you should not retain that digital file when you no longer own the physical CD. I am quite sure that this type of piracy will be rampant throughout the LaLa community as people just rip and trade.
This is a problem with no solution, though. At this point, there is really no way for anyone to identify these people. And these people already exist. They rip their CD collections and then sell the lot of them on Ebay or through Craigslist.
Article comments
1 - Tim Jarrett
Silly criticism, but--why no link to the service? Yes, lala.com is easy to type in, but give them a little link love if you're going to review them.
2 - FilteringCraig
Good point. The only excuse I have is that the program is in a limited invite only beta right now.
3 - Mike
How do these companies get venture capital when there are already similar sites out there that are offering the same thing for free like SwitchDiscs.com?
I think I'm going to go get some venture capital myself to help me start a online DVD rental website. Brilliant!
4 - Johnneth
It is funny how US-focussed this site is. I would expect blogs to be more open-minded. In Germany a much more advanced service has been existing called Hitflip. User trade not only der music-CDs there but also DVDs, audiobooks, console games and computer games.
5 - Bill Nguyen
Craig,
Very fair analysis. The difference is 'la la' works. Join the service and you'll see. We have more discs than anyone. We add a Wal-mart every 30 mintues and even more than Amazon has in inventory.
Most relevant, we're built for people that enjoy music. Expect full digital capabilities from us before launch in July.
Regards,
bill
founder, la la
6 - Anna
Craig any any four other people: I've got some invites I can hand out if you want them. Just let me know. My contact info is on my website.
7 - Jordan MacAvoy
Great article Craig.
I totally agree with Bill that you’ve done a “fair analysis” of current trends and some of the more interesting areas in this space. As you pointed out, it will be interesting to see how the artist first model works to curb any challenges La La may face. I like the nod that you've given Peerflix, especially since the notion of us moving beyond DVDs isn't wholly unimagiable. For now however, we are going to keep a laser focus on the DVD market.
Best wishes,
Jordan MacAvoy
Marketing Guy, Peerflix
8 - Anna
Craig: Did you get the invite I sent you? How is it working out for you?