Hannes Hesse, Kevin Lim, and Yiming Liu believes that there those who start a tipping point when it comes to music should be rewarded. Let’s say that I buy a song that I think has a great beat on Popcuts.com before many others. I will get get a cut out of everyone else that pays to download it after.
Each song on Popcuts is about 99 cents. Those who spot the trends first will get additional Popcuts downloading credit. It’s like a music pyramid scheme. “We thought that by providing this extra incentive to buy a song
legally, namely, owning a stake in that song, would make it more
attractive to buy,” stated Hesse.
The disadvantage is that users do not receive cash for their efforts. Just more music. And the music choices available on Popcuts right now is low. There are only 700 songs by 200 artists on the site. With such a low selection, it would be more in a consumers interest to link to Apple iTunes music from a blog or their own website and get a 5% commission assuming they already have an established online presence.
The AP mentioned that any musician is eligible for joining Popcuts while maintaining the rights to their music. Popcuts takes about 10-20% from song sales and the rest goes to fans.
Popcuts is a Y-combinator company. Popcuts has patents pending for their idea.