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Website for CD Swappers

Lala.com

— March 9, 2006 — Pop Culture
A new website, lala.com, allows users to trade their used CDs. (Yes, in this age of iPods and digital music, some people still listen to actual compact discs.) The concept is like a combination of iTunes, eBay and those old CD clubs where you used to order titles through the mail.

Users list the CDs they wish to offer for trade and use a search engine to browse the titles offered by other members. The company running the website, Palo Alto-based la la media, provides members with prepaid envelopes so members can send the CDs to each other through the mail. A member pays $1 for each trade, plus 49 cents for shipping.

The site also sells new CDs and offers digital downloads of full albums at retail prices, in case someone wants an album that isn’t available for trade.

la la media began testing the site with a select group of users in November. Last week it had 250 members trading 12,000 CDs. A full launch is planned for the summer.
Trend Themes
1. CD Swapping - Disruptive innovation opportunity: Create a digital platform that allows users to swap or rent physical media, such as CDs, in an age of digital music.
2. Prepaid Envelope Services - Disruptive innovation opportunity: Develop a service that provides prepaid envelopes for easy and efficient product exchanges within various industries.
3. Combination Platforms - Disruptive innovation opportunity: Combine the features of multiple successful platforms (e.g., iTunes, eBay) to create a unique and comprehensive user experience.
Industry Implications
1. Music Industry - Disruptive innovation opportunity: Embrace and leverage the concept of CD swapping to offer alternative distribution models and reach a wider audience.
2. E-commerce Industry - Disruptive innovation opportunity: Explore the potential of prepaid envelope services to streamline and enhance product return processes, increasing customer satisfaction and loyalty.
3. Media Streaming Platforms - Disruptive innovation opportunity: Integrate physical media swapping capabilities into existing digital platforms to offer users a hybridized experience and diversify revenue streams.
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