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Before the doors closed at the once-promising start-up, money got tight, and the payroll went unpaid. Management squabbles made a bad situation even worse.
Records show that the founder used a copy of users' e-mails to help compensate at least one former salesperson, who then sold the list.
E-mail exchanges between SpiralFrog managers and financiers, obtained by CNET News, shed a bit more light on power struggles and frustrations over the company.
Some investors of shuttered site are questioning how assets are being sold. At the same time some users are angry about losing their music.
A group that loaned funds to the now defunct ad-supported music service will get any money generated from asset liquidation.
Ad-support music service is dead and in two months its music will die, too. Is this more proof that DRM sucks or are customers too demanding of a freebie?
The pioneering ad-supported music service--once considered a possible threat to iTunes--quietly ceases operations Thursday.
Once a standard-bearer among ad-supported music services, the company's management may lose control of the company, sources tell CNET News.
Free-music service gains publishing rights. But without recording rights, it's still a long way from offering Warner's songs. Meanwhile, SpiralFrog reverses course on publicly reporting earnings.
Music service gets an extra year to pay back $7 million in loans. Company still offers songs from only one top music label.