“The Grooveshark system works on the basis of a peer-to-peer music sharing system, Greenberg said. Users can upload their personal music library to the Web site.
To legalize the process, the user must buy a song if they want to add it to their collection, he said. Part of the profit is then deposited into the account of the person who uploaded the song to Grooveshark.
In this way, the sharing of an illegal music system is paired with the legalized purchase with the added benefit of compensation, Greenberg said.”
Not sure I totally get it but I’m going to check out the site and see if it all becomes clear. Either way, it is so cool to see new thinking in this arena. It is guys like this that will revolutionize the music industry. Not Universal or EMI.
UPDATE: Christopher Suter, a developer at GrooveShark wrote in to say:
“To clarify, absolutely no purchasing of songs is necessary in order to join Grooveshark, share music, or use our free full-length streaming service. The option to download anything anytime does carry a price of $.99, of which the standard statutory cut goes to rights-holders.
Grooveshark is going to be in a state of constant, rapid improvement over the next few months, so stick around! “