In response to (#17) Anon:

The labels love the idea for this very, very simple reason: the great majority of the files that show up in Grooveshark were previously being shared illegally. Once they enter Grooveshark, all downloads of those exact same files from within the system will generate revenue where previously no revenue existed.

This definitely shouldn't be viewed in terms of ANY sort of a "cut in profit", because the original revenue that the labels were receiving was exactly zero.

As for splitting the profit with the user, here's how that part works: the labels usually have a set rate that they use with most digital music services, such as iTunes, Rhapsody, or even Grooveshark. That part is what they want, and that's what they get. From there, *we* split our profit, 50/50, with the users. The only people who are paying out of their pockets to the users are us.

-Nathan Thompson
(nathan.thompson@grooveshark.com)

In response to Anon:

"So what happens if the encoding is of a bad quality (like re-encoding music with a lower bit rate)?"

Encoding won't be an issue, as bitrates are clearly displayed.

"The problem with this, is that when people get payed to deliver goods, there will be frauds. Someone might upload a Madonna song, and claim that it is Mariliy Manson. Is there a built in system to protect those who buy fake songs?"

You can stream all songs in their entirety on Grooveshark free of charge. If you like what you hear, you can buy the song. This way you'll never accidentally download the wrong song. In fact you can even tell which version of a song you want.

I'm a little disheartened that you are so quick to judge without taking a closer look. As great as iTunes has been, it has not solved the music industry's problems. Keep in mind that Grooveshark is an honest attempt by a group of college students to change the music industry for the better. We all enjoy music, and we'd like to see a system that benefits the industry as whole (Yes that includes the artists, labels and consumers).

We are, and will remain, our own biggest critics.

Feel free to email me with any questions you may have.

-Nathan Thompson
(nathan.thompson@grooveshark.com)