Megaupload Reveals Plans for New Music-Selling Service

Megaupload Reveals Plans for New Music-Selling Service
Megaupload is currently in the midst of a public legal battle with Universal Music Group, as the file-sharing company recently filed a lawsuit when the label had YouTube take down its new promotional music video featuring such artists as Kanye West, Will.i.am and Alicia Keys. Now, Megaupload has announced some more news that Universal probably won't like: soon it will launch a service that will allow artists to sell their music directly through the website.

In an editorial posted on TorrentFreak [via Music Ally/CBC], Megaupload founder Kim Dotcom explained that his company will be launching a Bandcamp-style service that will allow musicians to circumvent record labels and sell their music directly to consumers. This, he claims, is part of the reason why Universal wanted to axe Megaupload's video from YouTube.

"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 direct to consumers and allowing artists to keep 90 percent of earnings," Dotcom said.

To make things even sweeter, musicians will be able to get paid even when users download their music for free.

"We have a solution called the Megakey that will allow artists to earn income from users who download music for free," revealed 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. You can expect several Megabox announcements next year including exclusive deals with artists who are eager to depart from outdated business models."

Keep your eyes peeled for updates regarding Mega's new music-selling features and its lawsuit against UMG.

In other news, Megaupload's promotional video on YouTube has been restored. YouTube said in a statement to Ars Technica, "Our partners do not have the right to take down videos from YouTube unless they own the rights to them or they are live performances controlled through exclusive agreements with their artists, which is why we reinstated it."

You can watch the clip below.