Free All Music to offer free MP3s

Free All Media, an Atlanta-based start-up, is the latest company to propose an ad-supported music downloading service. The company, which just announced its first seed round of funding Wednesday and expects to begin public beta testing by December, hopes to differentiate itself from flameouts like SpiralFrog with a unique advertising model that asks users to participate more directly in choosing the ads they’ll see.

The company’s CEO, Richard Nailling, explained how the company’s Web site, Free All Music, will work. Users will select an MP3 they want to download and a sponsor they’d like to “buy” that MP3 for them. They will then watch a video advertisement, between 15 and 18 seconds in length, from that advertiser. Once the ad is completed, they’ll be free to download the file, a 256kbps MP3 with no copy restrictions. No further advertisements will be served for that download.

But here’s the unique part–Free All Music will then…

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