Digital Content Marketplace Zipidee Set to Launch; Gets Funding

Zipidee, a San Francisco-based marketplace for digital content, is set to launch over the coming week, with unspecified venture backing from Individuals’ Venture Fund, Novus Ventures and Khalda Development, reports Red Herring. The site will allow third-parties to set up their own online stores, a la eBay (NSDQ: EBAY), to sell “long tail” digital content like music, videos, ringtones, e-books, and games. Zipidee will facilitate the transactions, while providing its own proprietary DRM system, should the vendor want that. Company founder and CEO Henry Wong is a veteran of AdECN, the online ad marketplace acquired by Microsoft (NSDQ: MSFT).

Of course, Zipidee is far form the first company to tackle this market. A host of startups have been doing similar things for a few years now, but getting people to pay for this type of content has obviously proven to be difficult. Early players Digizaar.com and RedPaper have quietly disappeared. It’s not clear how Zipidee will separate itself from the pack.

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