Kings of A&R

Universal Music is backing a start-up called SpiralFrog that will allow consumers to download songs for free. It will rely on advertising for its revenues, offering a different business model from that of Apple Computer’s popular iTunes music store.

The service, SpiralFrog, represents a departure from Apple’s 99 cents-a-song business model and other legal download services which charge a subscription fee by being completely free. It is due to start up in December.

“Offering young consumers an easy-to-use alternative to pirated music sites will be compelling,� said Robin Kent, SpiralFrog’s chief executive and the former head of the Universal McCann advertising agency.

Perry Ellis, the fashion company, said it would advertise on SpiralFrog. Levi’s, Aeropostale, Benetton and others have expressed interest. “Our audience is into music and can be more easily reached on the web,� said Oscar Feldenkreis, president of Perry Ellis International.

(Financial Times)