BurnLounge News

BurnLounge Founder Rob DeBoer Launches cPrime

Npros.com | 5/2/2010

From FitsNews.com: “Three years after he was implicated in the BurnLounge pyramid scam (a racket that was busted up by the Federal Trade Commission), former University of South Carolina running back Rob DeBoer is at it again – this time hawking “magic” magnetic bracelets that ostensibly provide whoever wears them with enhanced power, flexibility and balance.

Called “cPRIME” bracelets, these magnetic wristbands are being marketed to young athletes under the premise that they will help them excel in their athletic endeavors. They’re also being marketed to parents as a way to make money during these difficult economic times.”

Click below for the complete article.

Burnlounge Lawsuit in Hands of US Judge

The State | 1/13/2009

Testimony recently ended in the case over Burnlounge, a New York online music store operator that attracted many investors from the Columbia area.

The Federal Trade Commission sued Burnlounge executives and top recruiters, claiming the business was a pyramid scheme that rewarded investors for recruiting more people into the business, not selling music.

Federal officials have said DeBoer was Burnlounge’s top recruiter.

A federal judge in Los Angles is awaiting legal opinions from federal regulators and the defendants, said David Fix, an FTC attorney. A decision in the case could come later this month, he said.

BurnLounge in Wired News

Wired News | 12/15/2008

"This sounds peachy keen, but I was trepidacious because some of it sounds familiar. The most notorious "build your own storefront" music store was BurnLounge, which went offline in June after drawing negative attention from the FTC during the previous year for allegedly running a pyramid-type scheme that defrauded storefront owners. Good riddance; BurnLounge storefront owners used to drive me nuts, showing up to online music hangouts urging me to shop at their stores."

FTC Settles with BurnLounge

Digital Media Wire | 7/7/2008

The FTC charged BurnLounge in June 2007 with operating a pyramid scheme, where consumers were recruited to operate their own online digital music stores -- but instead of selling music, money was made mainly through signing up new store operators at $29.95 to $429.95 per year.

A federal court ordered BurnLounge to halt its network marketing scheme, and froze the defendants' assets.

BurnLounge on Wired Blogs

Wired Blogs | 6/5/2008

If your reaction to BurnLounge was anything like mine, you quickly became frustrated by chirpy, overenthusiastic strangers infiltrating your favorite spots on the internet to hammer you with links to lame bands, subverting the normal friend-to-friend recommendation experience.

BurnLounge ordered to surrender records

The State | 7/11/2007

A federal judge has ordered online music retailer BurnLounge to turn over its financial records and do away with a major part of its business plan that he called a “classic pyramid scheme.”

The New York company agreed to a preliminary injunction with the Federal Trade Commission after government regulators sued BurnLounge in June.

BurnLounge became popular in Columbia after being marketed by local sports and music personalities, including USC broadcaster Todd Ellis and Hootie and the Blowfish.

The injunction issued last week requires BurnLounge to stop paying money to members who recruit other investors and forbids the company from disposing of any assets obtained before June 6.

The company also must put 20 percent of its future profits into an escrow account and turn over accounting and financial records, including records detailing the sales of Web packages and music.

Last month, the company’s chief executive resigned after also being sued by the FTC.

BurnLounge Reaches Compromise Injunction with FTC

TechWhack | 7/3/2007

BurnLounge, the world’s first fan driven digital download community, has come to a cooperative agreement with the Federal Trade Commission based on its recent decision to eliminate the network marketing portion of its business.

”This is the first time in recent history that any company has emerged from such charges by the FTC and survived entirely intact,” said D.J. Poyfair, a partner from Shughart Thomson & Kilroy and lead outside counsel for BurnLounge. He added, “The Judge’s ruling allows the company to continue to move forward with its new model unabated and unrestricted.”

”Network marketing was a unique channel to promote our products, but the strategic decision to voluntarily remove this part of our business was the right decision on all fronts,” said Grant D. Johnson, chairman and chief executive officer, BurnLounge. “With this hearing behind us, we are aggressively moving forward and will focus on our new free model to help fuel the next evolution business growth to better benefit our employees, artists, partners and independent retailers.”

BurnLounge and FTC Reach Compromise

Digital Media Wire | 6/30/2007

Since the FTC filed its complaint, BurnLounge announced that it would abandon the "network marketing" aspect of its business model, where customers were rewarded when they recruited others to sign up and pay BurnLounge fees to create their own digital music stores. The company's CEO Alex Arnold, one of the defendants named in the FTC complaint, also resigned.

"Network marketing was a unique channel to promote our products, but the strategic decision to voluntarily remove this part of our business was the right decision on all fronts," said BurnLounge CEO Grant D. Johnson.

BurnLounge CEO Resigns Amid FTC Probe

Npros.com | 6/19/2007

BurnLounge co-founders Ryan Dadd and Stephen Murray along with the company's board unanimously approved the appointed of Alex Arnold's succesor, Grand. D. Johnson. Johnson is currently on the BurnLounge board and is a BurnLounge investor.

BurnLounge co-founder Stephan Murray said, "This change in management is a first step toward a reinforced focus on building the entertainment company we've always envisioned."

The company maintains that it's "revolutionary business model" is legal, and said it is "working to understand and address any legitimate issues and concerns the FTC may have."

A hearing will be held on Tuesday in California Federal Court on the FTC's demands for an injunction and asset freeze.

Burnlounge Rep Sued by FTC

The State | 6/10/2007

DeBoer said he is a retailer for Burnlounge, selling digital music on the Internet and the opportunity to purchase Burnlounge franchises.

The former running back said he has recruited about 45 other people to open their own Burnlounge music Web sites, for which DeBoer earns a commission for each song they sell.

Among those he has introduced to Burnlounge is former USC quarterback and Columbia lawyer Todd Ellis, who is not named in the lawsuit.

The Federal Trade Commission, which declined comment this week, filed suit Tuesday alleging that Burnlounge is a pyramid scheme and that its largest retailers have misrepresented the income investors made with the company, DeBoer said. DeBoer claimed by last summer he had made almost $300,000.

BurnLounge to Present at MUSEXPO 2007

Business Wire | 5/1/2007

Panel Presence to Coincide With BurnLounge’s Announcement of the Immediate Availability of Its Free Digital Download Stores and Social Networking Service

WEST HOLLYWOOD, Calif.--(BUSINESS WIRE)--Today at MUSEXPO 2007, Stephen Murray, co-founder, president of entertainment and chief creative officer for BurnLounge, will present as part of the panel, “Digital 360”. MUSEXPO brings together executives from the music, media and technology sectors from both within the US and abroad in a personal, interactive and forward-thinking manner. The “Digital 360” panel discussion will focus on today’s music experience as it relates to digital, mobile and technology.

Who: Stephen Murray, Co-founder, President of Entertainment and chief creative officer, BurnLounge

What: MUSEXPO 2007 Panel: "Digital 360"

Panel Members: Moderator: Ted Cohen - Managing Partner, TAG Strategic Co-Panelists: Chris Barton - Strategic Partnership Development Manager, Google Chris Castle - Managing Partner - Chris L. Castle, Attorneys (LA & SF) David Hyman - CEO, MOG Dr. Matthew Dunn - CEO/President, MusicIP Jay Frank - Head of Music & Label Relations, Yahoo! Music Justin Goldberg - Founder/CEO, indie911 Lisa Tiver - SVP Business Affairs, eCast Richard French - CEO, Avvenu Steven Stewart - Manager, Nokia Music Solutions

When: Tuesday, May 1, 2007, 11:30 a.m. - 12:30 p.m. PDT

Where: Bell Age Hotel, West Hollywood, CA 1020 North San Vicente Boulevard West Hollywood CA 90069 (310) 854-1111 (On-site registration available)

Gary Slaight Joins Burnlounge Board of Directors

CNW Telbec | 3/30/2007

"Gary's significant achievements and leadership in the broad arena of multi-media, brings to BurnLounge a blend of savvy corporate experience and a passion for music and entertainment that truly embodies the very essence of BurnLounge's culture," said Alex Arnold, co-founder, chairman and chief executive officer, BurnLounge. "Gary's knowledge and status within the industry will also be...

Burnlounge on CScout

Cscout | 3/26/2007

BurnLounge.com BurnLounge is a community-powered digital music service. BurnLounge provides music fans with the necessary software and an expansive catalog of music, to create and sell music (and fan merchandise) to peers from their own digital music stores. This consumer-driven retailing model draws on the power of peer relationships and shared interests of its seller’s communities. After purchasing the software, participating sellers can sign up as “fans” for free and redeem their BurnReward points for products, services or music downloads on BurnLounge. Affiliates pay an additional $6.95 per month but can redeem BurnRewards points for cash. Music Mogul have to pay a one-time set-up fee off $215 and $14.95 per month to gain access to Business Management features, which allows them to build teams.

Music hub BurnLounge releases new version

CNET Networks | 3/18/2007

ITunes and the coming Burnlounge storm

CNET Asia | 3/18/2007

My destination for now is insound. Let me count the ways.

They do the great thing of recommending music to you when you select what you like for your shopping cart.

The music selection is mostly indie or fringe mainstream electronic, hip-funk and elcectica that gets your panties itchy.

They also run a "radio" program that is actually a listing of streaming songs of the most popular and then also the most marginal content available on the site. I have made more than a few choices based on random selections of the radio listings.

You can also watch videos from a few bands. This is the destination of music.

Selective channeling of music for consumer experimenting and choosing.

They will soon have a bigger challenger. The under-the-radar but popular burnlounge is going to launch a free version of its "concentric retailing" software in April.

Burnlounge unveils new offering at SXSW

Music News | 3/15/2007

To circumvent this, the company has introduced a free social networking component called BurnPages, which lets users set up profiles that highlight their favorite movies and music, and link to a BurnLounge store to refer sales.

BurnLounge to Revolutionize Digital Media

BUSINESS WIRE | 3/14/2007

“With this move BurnLounge reaches its true potential and will transform the BurnLounge community into a dynamic interconnected marketplace,” said Alex Arnold, co-founder, chairman and chief executive officer, BurnLounge. “For years, fans have been spreading the word about their favorite music, movies and more. With BL2 users can open their own free customizable digital download Store to showcase their favorite entertainment and earn rewards for doing what comes naturally.”

BurnLounge to Launch Next Version of Software

openPR | 1/29/2007

openPR) - BurnLounge will launch the next version of its software – BL2 – in early 2007. This desktop application will transform BurnLounge from a digital music service into a fully-functioning and self-contained network of socialization and sales, combining digital downloading, community-building, and personal entrepreneurship in one place, for the first time ever.

BurnLounge 2.0 – BL2 – represents a bold step forward: the transformation of BurnLounge from a web-based store to a desktop application, downloadable onto any computer running Windows OS.

The BL2 software has several components:

The Store essentially replicates the BurnLounge 1.0 web-based store, but delivers it in striking new levels of power, elegance and function. In future releases of BL2, the Store will move beyond music and downloads to allow Retailers to sell merchandise, ringtones, movies and other digital content.

The Independent Content Editor (I.C.E.) is now more extensive and detailed than ever before, offering Retailers the opportunity to customize not only their featured content but also the layout of their Store.

Burnlounge Helps Global Relief Effort

Business Wire | 11/22/2006

The World Vision Artist Association BurnLounge Store will primarily feature three hundred artists in the BurnLounge catalog that are in partnership with the World Vision organization. Artists featured in the World Vision BurnLounge Store will be able to see their music help some of the most underprivileged children in the world. The World Vision BurnLounge Store also makes it easy for consumers to support the World Vision cause and buy great music at the same time.

“Our organization shares a belief in the power of music to attract, educate and inspire,” said Pamela Muse, Director of Artist Associates Program, World Vision. “The BurnLounge platform enables us to help further realize this belief and reach out to our supporters in a new and innovative way.”

World Vision also works with artists who promote World Vision child sponsorships and will be providing those artists with Money2Burn Cards to hand out at their concerts. The cards will be given to those who sign on as a sponsor for children in need and can be redeemed for free digital music downloads at the World Vision Artist Association BurnLounge Store.

“I have always been touched by the way music can inspire emotions and charitable giving,” said Ryan Dadd, Co-founder, President and Chief Operating Officer of BurnLounge. “World Vision is reaching out to music lovers who want to help support efforts to build a better world for children and we are honored that we can provide the platform to make this possible.”

Through BurnLounge’s proprietary software, music fans can use point-and-click technology to build their own fully functioning digital download store. These stores cannot only sell the music they love, but will also allow visitors access to a vast catalog of nearly two million titles from all of the major labels and hundreds of independents and unsigned artists. By allowing highly motivated fans to benefit from recommending their favorite music, BurnLounge aims to revolutionize the way entertainment products are marketed. BurnLounge is designed to provide a fun and exciting experience whether you’re looking for a fun and sustainable hobby or a serious business.

To access the World Vision Artist Association BurnLounge digital music store, visit www.burnlounge

Interview with Burnlounge CoFounder

DMW | 10/14/2006

DMW recently spoke with Stephen Murray, Co-Founder, President of Entertainment & Chief Creative Officer of Burnlounge, a New York-based community-powered digital download music service, to discuss their service and business model.

Click the link to view the complete interview

Burnlounge Teams with Live Nation

AHN All Headline News | 8/20/2006

Komfie Manalo - All Headline News Foreign Correspondent Los Angeles, CA (AHN) - Global events organizer Live Nation has entered an exclusive agreement with digital music service BurnLounge giving the latter's VIP members preferential treatment to Live Nation's concert venues.

Bruce Eskowitz, Live Nation's president and CEO of global venues and alliances said the deal will give BurnLounge members special access to amenities at selected company amphitheaters, clubs and VIP rooms across the United States including live date feeds of event information and links to purchase concert tickets.

The Hollywood Reporter said Live Nations owns and manages booking rights to 153 venues around the world. Early this month, the company bought majority stakes in Musictoday, after acquiring the House of Blue Entertainment for $350 million in July.

BurnLounge president Ryan Dadd said, "It not only benefits our community but provides BurnLounge with incredible visibility to thousands of concert-goers in key markets." He said the deal is a natural fit.

BurnLounge Launches Update

Yahoo Finance | 6/10/2006

NEW YORK, June 9 /PRNewswire/ -- BurnLounge, the world's first community-powered digital music service, announced today the launch of BurnLounge 1.0, a unique service that provides music fans with proprietary software and an expansive catalog of music, to create and sell music to peers from their own digital music stores. Additionally, the company has entered into an agreement with Signatures Network, enabling fans to sell merchandise from their favorite artists. Since launching the public beta in October 2005, nearly 30,000 music fans have opened their own BurnLounge stores, including artists such as Kanye West, Kiss, Good Charlotte, Hootie and the Blowfish, James Brown, Willie Nelson, Dale Earnhardt Jr., Tony Stewart, Cuttino Mobley, Danica Patrick and John Salley.

Burnlounge Service Provider Stock Rises

TMC Net | 5/12/2006

BurnLounge

Rap News Network | 4/21/2006

Music group Ball in the House recently announced their launch of a digital music store through BurnLounge, the first community-powered digital music service that enables passionate music fans to sell the music they love to friends or like-minded individuals.

While Ball in the House may not be on a major record label, the Boston-based pop and R&B band has risen above the ranks of professionally-signed chart-toppers, including the Black Eyed Peas, Coldplay, Gorillaz, Kelly Clarkson and James Blunt. Thanks to the emergence of digital music download services such as BurnLounge - on which Ball in the House held the coveted number one position on the BurnLounge Top 10 Chart for two full weeks in March 2006 - independent artists can compete with signed artists on a more level playing field.

Burn Lounge CEO Addresses Strategies

Yahoo! Finance | 4/8/2006

Alex Arnold, Founder & CEO, BurnLounge, to Speak at the Urban Network Entertainment and Marketing Summit and the 2006 Harvard Business School Entertainment and Media Conference

NEW YORK, April 5 /PRNewswire/ -- BurnLounge, the next-generation community-powered digital music service that enables passionate music fans to sell the music they love to friends or like-minded individuals, announced today that Founder and CEO Alex Arnold will address digital music strategies and BurnLounge's innovative business model at the Urban Network Entertainment and Marketing Summit this week at the Riviera Resort and Racquet Club in Palms Springs, Calif. Additionally, he will speak toward digital music consumption and the future of the industry at the 2006 Harvard Business School Entertainment and Media Conference in Boston, Mass.

Arnold will participate as a panelist on "Digital Strategies in the Business of Music" on Friday, April 7. Arnold and fellow panelists will discuss marketing and selling digital music content through non-traditional distribution methods and unique business models which support such methods, including BurnLounge.