Project Playlist's Gets $3M To Keep Experimenting

Project Playlist calls itself a “social music experiment.” In other words, it’s just one of the many options available when it comes to adding an embeddable music player to MySpace or Facebook profiles. Its simple player lets users aggregate free MP3 files available on the Net and put them together in a widget that can be posted just about anywhere. This week the company even announced a version of Project Playlist for Apple’s (AAPL) iPhone.

The Beverly Hills, Calif.-based startup has raised $3 million in funding, according to PE Hub. We tried to contact the company to find out more about their Series A round, but to no avail.

Project Playlist makes some money through advertising on its site, and spends on “performance royalties” paid to performance rights organizations. These orgs, in turn, dole out undisclosed sums to songwriters and music publishers. The more their songs appear on playlists, the more they get paid.

Even though the company pays musicians and publishers, as with any music player, copyright is a serious concern. Project Playlist doesn’t host music content (it plays files hosted on third-party web sites), and claims it maintains no editorial oversight over what gets posted by its users.

iLike (the popular Facebook music discovery app) also aggregates external files, while Imeem has a growing, but limited amount of approved music content available to use in playlists.

Project Playlist’s site traffic has rocketed higher by nearly 2000 percent in the year since August 2006, according to this graph from Compete.com.

It’s hard to say which music player is the most popular overall, since iLike and others allow full use of their application directly through Facebook.

According to current stats from Facebook app traffic measurement tool Appsaholic, iLike is the most popular, with 789,329 daily active users, followed by Project Playlist, with 21,350 daily active users. Imeem has 9,005 daily active users.

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