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Why was MegaUpload really shut down?

In December of 2011, just weeks before the takedown, Digital Music News reported on something new that the creators of Megaupload were about to unroll. Something that would rock the music industry to its core. (http://goo.gl/A7wUZ)

I present to you… MegaBox. MegaBox was going to be an alternative music store that was entirely cloud-based and offered artists a better money-mak (Read more…) opportunity than they would get with any record label.

“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 directly to consumers while allowing artists to keep 90 percent of earnings,” MegaUpload founder Kim ‘Dotcom’ Schmitz told Torrentfreak

Not only did they plan on allowing artists to keep 90% of their earnings on songs that they sold, they wanted to pay them for songs they let users download for free.

“We have a solution called the Megakey that will allow artists to earn income from users who download music for free,” Dotcom outlined. “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.”

(Quelle: Shauna Myers auf G+)