Was Megabox the reason behind Megaupload’s shutdown

By on January 24, 2012
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Record labels afraid of model change?

Almost a month back, Megaupload announced a new form of music sharing, called Megabox, which would seemingly revolutionize the music industry.

For all intents and purposes, Megabox was to be just another online music sharing site where artists upload their own music for free or at a price, but where things differed significantly were in two key areas which would have benefited music artists immensely. Firstly, artists would have been receiving 90% of the earnings from their own music. “UMG knows that we are going to compete with them via our own music venture called Megabox.com, a site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings,” MegaUpload founder Kim ‘Dotcom’ Schmitz told Torrentfreak, as reported by Digital Music News.

Secondly, Megaupload would have actually paid artists for songs that were available for free, using Megakey. “We have a solution called the Megakey that will allow artists to earn income from users who download music for free,”  said Dotcom. “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.” Megakey presumably used the ad money that Megabox would have received as more people watch a specific artists free video, and paid a portion of that ad money to the artists.

If the claims of Kim Dotcom were true, Megabox would indeed have been a game changer for the entire music industry, where the artists benefit the most from their work. Perhaps the existence of Megabox did indeed lead to the sudden closure of Megaupload, we’ll find out more in the coming days as the drama surrounding Megaupload unfolds.


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From auditing to editing, I now test and analyze the latest gadgets and games instead of the latest financial statements. Both jobs are equally intense and rewarding. When I'm not burning up hardware in the name of science, you'll find me nuking in DOTA 2 or engineering in TF2.

Comments
  • guest

    If this is indeed as accurate as described, this action is just yet another bit of evidence of the abominations of the large media oligarchy and their deplorable influence to society and culture. I haven’t respected the big media for a number of years now and this may possibly be an important action that’ll help push for the end of their current practises.

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