Yesterday we wrote about Qtrax, a business that was launching “the worlds first 100% legal and free Peer-2-Peer music application” with all 4 major record labels on board. There was a ton of hype surrounding the launch, particularly because they said they had 25 million songs available for free.  Unfortunately for them, the hype was for nothing and all that has come out of this is a lesson for future business owners on how not to launch a business.

By the time they actually managed to get the software launched late yesterday, not a single song was being offered for download. Some launch, huh?  Engadget described it as a “barely skinned version of the open source Mozilla-based Songbird music player.” Several hours after launch, they managed to get 10 million tracks to show-up, but downloads still did not work. Sounds like they jumped the gun to me.  To make matters worse, none of the four major record labels have actually signed any type of contract. Some people have called the Qtrax team liars while others have said they are misrepresenting the actions of the music labels and the service is a total fraud.

The only benefit to this whole situation that I can see is that Qtrax has been plastered all over the place because of the mis-haps they have experienced.  And to me, it seems like they are generating more publicity for themselves than they would have received had everything gone as planned. To say that they had the four major record labels on board when they really didn’t though, that’s pretty bad. It makes you wonder what their investors are thinking at this point, doesn’t it? If they can manage to actually get the major record labels on board though, this could be big and would probably help people forget about the fiasco that came about when the service first launched.