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Music Business Growth On the Web

There is a new player in the music business and it is located on the internet. The site, called Lala.com is a mix between Wikipedia, Ebay and Napster, and is carrying the burden that Napster faced in its heyday. Unlike any other online music business, Lala.com plans on "donating" a portion of their profits directly to musicians, which means that they are by no mean violating any copyrighting laws. In fact, the entire site works through the "exchange" of CDs between users.

How many old CD`s do you have lying around the house? How many times have you bought a CD, transferred the music to your mp3 player and totally forgot the CD ever existed? Well, now you can trade these discs with other users across the world! Lala.com is a great business idea that comes out of Silicon Valley, run by start-up veteran Bill Nguyen, which plans on revolutionizing the way that musicians can receive money for their work.

The site works by having new individuals compile a list of CD`s they are willing to trade and CD`s that they want in return. When an exchange is made, the user pays $1.49, where $0.49 is for shipping charges while the rest of the money gets split between profits, administration and "donation" into the musician charity. In order for musicians to receive payment from this charity they must apply for it. Money is given depending on the quantity of that particular artist`s disc exchange. For new artists, who have not signed with a label, this business idea is a great way to get music moving across the globe.