The boilerplate goes like this:

Lots of labels have distribution deals with GS, and more are signing on everyday. They have an escrow system set up so that as the deals are signed, the labels can collect any money that has accrued.

"is it legal"

Good question. Hope someone can answer that here, for those of us who care about that sort of thing.

This looks like the best thing I've seen to replace napster. Good job!

I would argue that the law is ill equipped (or not the best place) to hammer out the rights and wrongs of emerging technologies that clearly will not go away. The only way forward for the labels is to embrace these 'upstarts' and work with all of them for a few years in profit sharing deals (reasonable ones not like the Imeem deal) and with a little lateral thinking imagine the profits to be made in a world full of content on demand (films included). But due to the nature of the beast, costs must come down 'right down' before they will go back up (legally).

BTW I think GS is ultra slick..

Good luck guys