MegaUpload planned to launch legal music service when raided

By , ITworld |  Cloud Computing, Kim Dotcom, Megaupload

Dotcom Mansion, the home of the accused Kim Dotcom, who founded the Megaupload.com site and ran it from the $30 million mansion is seen in Coatesville, Auckland, January 21, 2012. The U.S. government shut down the Megaupload.com content sharing website, charging its founders and several employees with massive copyright infringement, the latest skirmish in a high-profile battle against piracy of movies and music.

REUTERS/Nigel Marple


Conspiracy Alert! Was MegaUpload clobbered to stop upcoming legal service, or is founder Kim Dotcom blowing smoke?

Just before being shut down, MegaUpload announced their plans to release MegaBox, a legit music locker with downloads for purchase. Founder Kim 'Dotcom' Schmitz, just after Universal Music Group forced a video by various artists extolling MegaUpload be taken off the Web, promised he was about to release a legal jukebox service that would allow artists "to keep 90 percent of earnings." A few weeks later, MegaUpload was raided and Kim Dotcom jailed.

MegaBox, beta tested with partners 7digital, Gracenote, Rovi, and Amazon MP3, uses a solution called Megakey that "will allow artists to earn income from users who downloaded music for free," according to Dotcom. Since MegaUpload had about 50 million active users and accounted for about four percent of all Internet traffic, they had the platform to create a music service to seriously compete with established record companies. Until they were raided, of course, which led to the conspiracy theories.

Bullies

Entire Music industry is a monopoly and they want to continue it, its as simple as this.
Hardik Desai on techcrunch.com

That's 85% more what the record labels currently give to the artists. As always the music industry screws the people and the artists
xerroz on tomsguide.com

smells like apple had a part in this too...
NightLight on tomsguide.com

Megabox would work

Megabox just went live a month ago. check out this quote from billboard.biz: "If Megabox has any advantage it is the ability to tap into Megaupload's existing base of some 50 million users."
Chris Messina on techcrunch.com

Yes, the Megabox plan was to allow artists to sell their work and keep most of the profit, or offer it for free and Megabox would push them money for doing so.
thornbreaker on tomsguide.com

I just signed up for MegaBox, and I like it!
Gregil10 on digitalmusicnews.com

No conspiracy here, folks, move along

The shutdown of MegaUpload was the result of an FBI investigation that took place over the last two years.
Benjamin Popper on techcrunch.com

Schmitz also pleaded guilty to embezzlement in November 2003 and received a two-year probation sentence.
naamah on digitalmusicnews.com

One of the top-19 pirates **AND** launching a music service site. Interestring strategy. Screw the artist on both ends.
sam@Projekt on digitalmusicnews.com

Vote now: MegaUpload clobbered to prevent the launch of a new music service, or conspiracy theory spun by a shady Kim Dotcom?

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