I don't know that the flat-rate scenario is, so perhaps you can explain for me: what's the idea? Do musicians all get paid the exact same? What exactly is the "flat" rate being discussed here?
It's basically a flat tax, meaning it doesn't matter how much you download or consume, the proceeds of which would be somehow distributed back to the artists.
The tricky part is obviously in how to fairly distribute the money, and this is where tracking what gets listened or downloaded comes into play.
