Kadoink, a startup that allows musicians and consumers to share music-related content and messages over mobile phones, on Thursday announced its public launch.
Music acts including the Kottonmouth Kings, Death Cab For Cutie, Jordin Sparks, and Third Eye Blind will distribute songs, text messages, and voice mails via cell phones to what they expect will be their mobile fan clubs.
But the much-ballyhooed marriage between cell phone and social network has so far been a downer. Startups such as Amp'd Mobile and Helio have tried to fuse social-networking into mobile and face bankruptcy or near-bankruptcy, respectively.
San Francisco-based Kadoink's founders aren't deterred. They tout the startup's technology mix for its ease-of-use, cost, and content to succeed in joining the cell phone, social networks, and music.
"We are very different in that we are not limited to any one mobile network; we don't require a download and we can work on any handset," said Roland Deal, Kadoink's vice president of marketing.
Unlike Helio and Amp'd, Kadoink does not sell the underlying cellular service or mobile phones, so subscribers of any cellular service can access Kadoink's fan network.
"There is a lot of interaction between artists and fans on MySpace and fan sites, and we are simply replicating that interaction on mobile phones on an opt-in basis," Mr. Deal said.
The communication between artists and fans runs the gamut from text and audio updates as to when the performers' new album will be dropped, to more intimate communication centered around artists' random musings.
Faced with plunging CD sales, the music industry has been exploring the mobile handset as a distribution channel for its content, particularly among younger fans, but to date it has been unable to fully exploit the opportunity.
According to research from IDC, of the more than 99 million people in the United States who own music-capable cell phones, only 12 million actually use their cell phones as music devices. By 2011, 266 million people will have music-capable phones and of that number only 22 million people will use them for music, according to IDC's projections.
"Most consumers, regardless of age, still don't see their phone as an entertainment device," IDC analyst Michael Goodman said. "The music industry's fundamental problem is that it has alienated both the consumers and the artists, so Kadoink has an uphill climb."
While Kadoink's initial focus is on the music business, the startup plans to extend its service to a number of other areas including sports, comedy, and other forms of entertainment.
Kadoink will draw advertising revenue from the companies that use its services to promote their artists and concerts and it will also charge subscription fees to partners that choose to distribute content on a regular schedule.
The company will also enable transactions for merchandise, whether music or hard goods, on behalf of its customers.