Lala failed to ramp its original, CD-focused swapping model, though perhaps SwapTree can pull it off.  The Boston-based SwapTree just scored a $4.8 million investment, according to regulatory filings.  That is part of a broader, $6 million Series D, though the recent source of funds remains unclear.  In September of 2008, SwapTree finalized a $3.8 million round from Safeguard Scientifics of Pennsylvania. 

The SwapTree model traverses used books, DVDs, CDs, and video games, a broader physical-to-digital play.  The concept is based on the large amounts of dusty media cluttering personal collections, and the easy, cost-free benefits of barter.  Now, the question is whether SwapTree can scale where Lala could not.

Of course, none of this is friendly to media companies, just like used car lots are unfriendly to automobile manufacturers.  But SwapTree is just one part of a ballooning and free media exchange, one that involves much larger digital content swaps.