So, let us have a small talk about a small revolution so threatening that it shook up the entire world. Well, maybe not the entire world, but most definitely all the major music labels around the globe. Including their very close and powerful friend called the Federal Bureau of Investigation.
However, that does make me wonder who in fact wears the pants in that relationship… Anyhow, let’s move on to what caused this revolution.
MegaBox. The new product in development by Mr. Kim Dotcom that has stirred up the world. Kim Dotcom is the founder of Megaupload limited which the FBI force closed. Which, I assume you all know by now, was a cloud based storage website where you could upload and download almost anything varying from tv-shows to software programs.
The next step by Kim Dotcom was to set up a cloud based music sharing website. Now, although it sounds similar, this is not something like Youtube, Grooveshark or Spotify or any of that kind. No, this is much, much better!
MegaBox is a platform where artists are able to directly put their music to the public themselves without the greedy intermediation of music label companies. In turn, users are able to download the music for free. Now of course you might be thinking, “how the hell do the artists get their money?” and you are absolutely in your right to not know the answer to this. The answer is rather easy. MegaBox pays the artists for every single time a song is downloaded.
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. -Dotcom
If you are not that much into business, let me explain how it works. Websites can generate a huge amount of revenue simply by putting up ads. That is how Google got where they are right now and it is the same method how the market has ridiculously overvalued Facebook and their business model. The ads will generate more revenue for the company as users see it more.
MegaBox has intensively invested in advertising their new service with the help of great artists including Busta Rhymes. Kanye West, will.i.am, Jamie Foxx, Sean “Diddy” Combs, Alicia Keys, and Chris Brown.
Assuming all you freeloaders who want all the music they can get will visit MegaBox, the website will skyrocket to becoming one of the most visited websites out there. MegaBox will swim in the money they generate through advertisements and will pay artists a fixed price for every download they get. It’s fucking brilliant concept!
However, now comes the problem for MegaBox for the music industry. The effect it will create is that artists ranging from superstars to basement artists finally have a way to directly reach their target group. I mean, who buys CDs nowadays? All people do is buy songs from iTunes, which BTW you don’t even own!! (thats right, read about it here). So thinking about it, we should go back to purchasing vinyl and CDs i.e. tangible assets! However doing this would still mean the artists don’t get paid enough for their music and you still pay an overpriced sum of money for an album of which the most goes to label records. The Root did an excellent and extensive research on this.
So the last thing that music labels want is for everyone to switch to this magnificent, genius, flawless and justified system! And that is exactly why MegaBox will succeed, because it gives you what is rightfully yours.
Follow Kim on twitter here.