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Kim Dotcom looks to investors for Baboom music service

Megaupload founder Kim Dotcom is planning a stock market flotation for his new digital music service Baboom.

The controversial entrepreneur is looking to raise AU$4.5 million (£2.5m) for the venture by going public on the Australian Securities Exchange by the end of 2014.

Dotcom published the plans in a prospectus on Baboom's website, which was also delivered to would-be investors. The company aims to issue up to 11.25m shares at AU$0.40 each.

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A hybrid of Spotify, iTunes and Bandcamp, Baboom allows artists to upload their music for listeners to stream or download. Funnily enough, the first artist to feature was Dotcom himself, back when the site soft-launched in January.

In the prospectus, the service's approach is outlined, involving the merging of downloads, streams, artist profile pages and social media posts, plus the sale of tickets and merchandise. Artists may choose if they wish to charge for downloads or offer them for free.

If they choose to watch target ads, Baboom users will earn "credits" for free music, while an offline storage option (like Spotify's) is also offered.

Mega users will be the first to feel the Baboom promotional push, since its initial campaign will target the 8.4m users of Dotcom's cloud storage service. Before this though, the prospectus reveals, a beta will surface in the third quarter of 2014.

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The site's revenue model seeks to profit from a 10 per cent commission on music downloads sold through the site, alongside advertising and subscriptions for exclusive content.

The music industry is "ripe for disruption", Baboom's head of content and platform, Mikee Tucker, has stated on the company website, but the disruption already caused by its founder's other ventures might be a bit of a hurdle.

Dotcom's antics with filesharing site Megaupload (now defunct) have left him with criminal and copyright infringement charges, plus an extradition battle against the US. His infamous CV could therefore deter many labels from involvement.