Quote:
Originally Posted by John Eppstein 
But what I'm proposing is a big clearinghouse for all commercial (meaning music with the necessary registration codes) music - kinda like a huge record store with EVERYTHING.
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The idea that advertising revenue can fund content is an interesting one. But unfortunately, it's being done all over the internet and we've yet to see proof that this can sustain whole companies never mind
the worlds musicians.
If you do the math, you'd understand why it does not work......Spotify, YT, Myspace, Facebook, ALL make their money through this 'advertising pays for content' model. Even the pirate sites operate on this 'model'
Youtube is still running an operating loss.
Facebook hit a small profit for the first time this year
MySpace has never turned a profit and its losses are mounting.
Spotify [probably closest to your model as it actually deals with music!] is making a $5.5m
monthly loss
Even the Pirate Sites barely make enough to keep their head above water.
I've had numerous discussions with people about this- but we've nearly always come to the conclusion that the advertising paying for content model is more of a reaction to free rather than a solution to it.