A Product Service System: CD Swapping at Lala.com
by Kara DiCamillo, Newport, Rhode Island on 06.13.06
Lala.com is a new site on the Internet that’s dedicated to allowing fans to trade music CD’s for just $1.00, plus shipping. The site works something like an eBay auction and reminds us of Peerflix because of the trading platform. It encourages consumers who sign up for the service to list all the CDs they may want to exchange as well as ones they would be interested in receiving. But, here’s the other piece of this: Lala.com gives struggling musicians a major cut of the proceeds. Here’s how it works: Once an exchange is arranged, the recipient pays $1.49, of which 49 cents pays for shipping the disc, leaving $1 for the company for musicians, administrative costs and its own cut. Lala.com said 20 cents of each $1 will go into a charitable fund for the musicians. It is looking to pay the musicians via a charitable organization it has set up called the Z Foundation. It plans on keeping 20-30 cents for itself, with the remainder going on administration. The site isn’t actually “live” as of now, but the Company says they have been testing the service for several months with nearly 100,000 people and claims to already have another 200,000 people waiting to join the service when it goes live. Thanks for the tip, Matt! Via ::Reuters ::Lala.com
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I'm not sure if I really think that this idea is environmentally friendly. Buying music online is environmentally friendly when you can download it directly to your computer and not waste resources shipping it...
George - very true and good point. it is, however, a great way to recycle CD's, hence the PSS. thanks for the comment!
it's also misleading because it's $1.49, after shipping.
That's true kara, I suppose there are a lot of CDs that have already been made that are out there.
While these services seem like a good idea, I wonder what they truly offer that an existing platform like ebay doesn't. Fixed price is one thing, I guess.
one BIG thing they offer is that 20% of the proceeds go to working musicians--and the founders want to do more than that soon. Also, you're not getting nickle-and-dimed the way you are on eBay (listing fees, add-ons, final transaction fees...)
I Think it is GREAT I have Swapped over 100 cd's and have got some of the best music from Artists I would have never been able to afford Before!
The site is also easy to navigate,
In my openion one of the best deals on the Internet!!
Also saves the environment by not having to drive around for hours looking for a certain or outdated cd.
Lala's 20% contribution to artists sounds like sketchy vaporware at best and a full-on scam at worst. This is from the website:
How does 20% of each trade reach the artist?
la la plans to create a registry where artists can come and identify themselves and claim ownership for each album they've been a part of. We'll ask for certain forms of identification to make sure the individual is who they say are, and then do a basic check using industry databases. Once registered, the artist will receive 20% of the $1 la la fee everytime one of their CDs is traded. If there are disputes amongst artists over percentages, we will mediate in an attempt to resolve the dispute. If no resolution is reached, the money will go to our 501(c) charitable foundation. This foundation will focus on providing performing musicians with subsidized healthcare, legal services, and support.
It all sounds rather iffy.
There is another cool site where you can trade DVD's for 99 cents, called PeerFlix.
I should add that since commenting on this service I actually signed up for it and traded away a few CDs. I was pleased with my experience. It's a great way to cull that dead wood from your collection.