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.
'Music will be free for users who install the Megakey App. Anyone who does not like the App can just purchase the music,' Dotcom told TorrentFreak previously. Most of the revenue generated will go directly to the artists with Megabox keeping a small share. This fraction pales in comparison to the amounts held back by the major labels.
'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. In the weeks to come Kim Dotcom and his team are hoping to get Megabox ready for a public release, with or without 'The Black Keys,' 'Rusko,' 'Two Fingers' and 'Will.i.am' as exclusive artists. In addition, Megaupload is also expected to return before the end of 2012.