Defunct SpiralFrog Spent $26.3M in 2008; Sales Were $1.2M

Authored by Mark Hefflinger on August 10, 2009 - 11:55am.

San Francisco - SpiralFrog, the ad-supported song download service that recently shuttered, spent $26.3 million in 2008 while generating just $1.2 million in sales, according to a chronicle of the company's flame-out published by CNET News.com. The company spent millions on search engine and affiliate marketing, attracting a peak of 7 million unique monthly users to the site -- but few came back. After funding dried up and the company ceased spending on such marketing, unique users dropped to just 776,000 in October 2008.