I came across this on ecogeek:
At some point you probably went through the painstaking process of loading all your tunes onto the computer. Well, now you're stuck with a stack of CDs and don't know what to do with them. The new music exchange service La La, enables CD trading for just $1.49, allowing several people to use each CD, keeping discs in circulation instead of going on the landfills or cluttering up your valuable closet space.
Once you become a member, the service encourages you to list all the CDs you want to exchange as well as ones they would be interested in receiving. Once an exchange is arranged, the recipient pays $1.49, of which 63 cents pays for shipping the disc. Netflix-style shipping kits (prepaid standard envelops) will arrive in the mail after you list your first CD at the site.
Twenty cents of each dollar you pay goes either directly to the artist. Or, if the artist no longer holds a copyright (think Beethoven,) those 20 cents go into a charitable fund to provide health insurance for musicians. The site is Inspired by a Wikipedia style information model. Fans and artists jointly decide whether a musician who applies for compensation will get paid under the system. This model has the potential to transform music-industry economics, giving musicians a major cut of the proceeds while largely freezing out record labels and other intermediaries. Whatever remains after shipping and those 20 cents goes to running the company.