Megaupload was about to launch a music service called MegaBox that could have enabled artists to give away their music for free and get paid by MegaUpload via revenue generated by advertising. Given the size of MegaUpload, at the time of its shutdown the 13th largest website, hosted on more than a thousand servers and more than 1 billion visitors every month, MegaUpload could have been a serious threat in such a venture for the music industry.
Imagine a service that attracts 50 million users a SINGLE day and gives away music free of charge, generating cash from ad revenue while keeping artists happy. Suddenly you don't need music publishers anymore.
What the hell is Megabox right? Good question. It was set to be a digital music store that was going to be entirely cloud based and would offer the artist a better deal than any other similar DIY distribution store or record deal. Even a MAJOR label deal, as Megabox was looking to pay the artist up to 90% of their earnings. To put this in context with other record deals - and critically how much the labels and suits would be losing if Megabox got off the blocks – a typical record label would give the artist around 5% of the profits if they were lucky. That’s A LOT of potential lost revenue if Megabox got set up.
On top of this, Megabox also sought to pay the artist for any music that was downloaded for free. Kim ‘Dotcom’ Schmitz explains: ‘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.’
So essentially, Megabox could have put all major record labels out of business or leaping to re-negotiate with artists and take massive losses. They already apparently had several deals with big (unnamed) artists ready to announce over 2012 because many of these artists were ‘fed up with outdated business models’ that they felt exploited their talent. Remember that Megaupload youtube video with all those major artists?
So, it seems logical that with Megabox on the horizon that those damn suits in Hollywood would pressure the U.S. government do something about Megaupload. And about three weeks after the announcement of Megabox, Megaupload is just a memory. Coincidence? We can’t be sure but I wouldn’t bet against it.
Suddenly I-tunes and other publishers become OBSOLETE.
Basically their plan was:::
Users download music for free (100% LEGALLY with artists full permission)... AD revenue is used to pay artists with a 90 / 10 split with Artists keeping 90% of the profits. This would offset the lower profits from Ad revenues.
Megaupload does very LITTLE extra work... attracts MASSIVE amounts of artists... and EVEN MORE users...
Itunes and other music publishers gets ROYALLY screwed
Its just like how PG Users make $$$ From people DLing their posted files on filesharing websites...
MPAA + Music Industry shat their pants and panicked... using their full lobbyist powers of influence and multi billion dollar arms of power to rape megaupload
Was Megaupload Targeted Because Of Its Upcoming Megabox ...
techcrunch.com/.../was-megaupload-targeted-because-of-its-upcomin...
14 hours ago – This theory stems from a 2011 article detailing Megaupload's upcoming Megabox music store and DIY artist distribution service that would have made services like I-Tunes obsolete
MegaUpload Shut Down Because of Megabox ... - Tom's Hardware
www.tomshardware.com/.../
megaupload-kim-dotcom-
megabox-downloa...
4 hours ago – The downfall of
MegaUpload is surrounded by another possibility.
The Megabox: was this the real reason for Megaupload's shut down ...
www.factmag.com/.../the-
megabox-was-this-the-real-reason-for-
meg...
15 hours ago – Weeks before the takedown of file-sharing giants
Megaupload, the site's founder had announced their plans to create an “alternative music" distribution service to rival all others and with only days left till launch...
the hell, no wonder they called in the big guns and did THIS DRASTIC MEASURE shit ! 
