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Last December, we wrote about a report put out by the Swiss executive branch noting that, based on their research, it appeared that unauthorized file sharing was not a big deal, showing that consumers were still spending just as much on entertainment, and that much of it was going directly to artists, rather than to middlemen. In other words, it was a market shift, not a big law enforcement problem. At the time, we wondered if Switzerland had just bought itself a place on the USTR's "Special 301 list" that the administration uses each year to shame countries that Hollywood doesn't like.

They ran models of Nelson's subscription-based theater idea, showing that to break even they would need 3,000 people, or 15% of the mountain communities, to sign up. For $19.95 per month, a member would be able to see each movie one time and buy individual tickets for friends. Non-members could buy a $16 day pass.

Kim Dotcom is determined to put the major music labels out of business with Megabox. At the same time he promises to give artists full control over their own work and a healthy revenue stream. Today Dotcom released a video on the making of Megabox which unveils some of the service’s features. The video also shows “The Black Keys,” “Rusko,” “Two Fingers” and “Will.i.am” as exclusive artists.

So why would artists join Megabox in the first place? The goal of Megabox is to give the public access to free music and compensate artists through advertising revenue. Megaupload’s founder believes that this “free music” business model has the potential to decrease music piracy while giving artists proper compensation for their work. This revenue comes from the Megakey application that users have to install. Megakey works like an ad blocker, but instead of blocking ads it replaces a small percentage with Mega’s own ads. Those who prefer not to install the app have the option to buy the music instead.

“These new solutions will allow content creators to keep 90% of all earnings and generate significant income from the untapped market of free downloads,” Dotcom said.