New York - SpiralFrog, the provider of a free, ad-supported music download service that won licensing deals from two of the four major labels, has quietly shut down, CNET News.com reported. A "source close to the company" told CNET the company has ceased operations, and its assets have been surrendered to creditors.

The New York-based company launched in 2006, and a year ago claimed to be the third-largest legal music download site in the U.S., behind iTunes and Rhapsody.

SpiralFrog downloads came locked with digital rights management (DRM) software, however, at a time when most services are transitioning to offering DRM-free MP3s.

With only two majors signed on, its catalog also paled in comparison to other music services.

Fellow ad-supported music download provider Ruckus also recently shuttered its service.

Poll: Are Free-To-User Ad-Supported Music Services Ultimately Doomed?

Related Links:
http://news.cnet.com/8301-1023_3-10200722-93.html

http://snipurl.com/e83qo (DMW previous coverage)

http://www.spiralfrog.com