I can’t say I’m surprised but it’s sad nonetheless. Ad-supported music download service SpiralFrog appears to be no more.
Unable to raise a further round of funding and crippled by debt, the service couldn’t overcome “a macro-economic perfect storm”, a source close to the company tells CNet.
Basically, any startup whose revenue is purely tied to advertising is facing tough times – last100 included – as the downturn means that brands are cutting their marketing budgets or at least being far less experimental in how they spend their money. That’s bound to make new business models like SpiralFrog’s particularly vulnerable.
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