The creators of MegaUpload had an ace in their sleeve that would rock the music industry to its core. Seriously, just sit down and read this because I couldn’t believe it either when I found out! It’s simply unheard of and cannot be competed against.
What Could It Be!?
Back in December of 2011, Digital Music News reported that MegaUpload was going to launch an alternative and entirely cloud-based music store that would provide artists with a much more lucrative selling opportunity than traditional record labels. This alternative would’ve been called MegaBox.
UMG knows that we are going to compete with them via our own music venture called Megabox d-o-t c-o-m, a site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings - Kim ‘D-o-t-c-o-m’ Schmitz, MegaUpload founder
So just when you were thinking DAMN, 90% of the profits, he goes on to say:
We have a solution called the Megakey that will allow artists to earn income from users who download music for free. Yes that’s right, we will pay artists even for free downloads. The Megakey business model has been tested with over a million users and it works.
Wow! Artists will also get paid for letting users download their music for free on top of keeping a 90% profit share? Any artist not jacked up on methamphetamines would be stupid NOT to drop their record label and sign up with this system. Hence why it got shut down before it was even started.