i want some more details, but there's nothing implicitly wrong with this model. I worry that the DRM which it requires will not be feasible under non-windows OS's or won't be as widely supported as they claim in various classes of device.
also, of course, the files will be broken, that's impossible to avoid, but if this model provides enough value to users to not want to break it, that's the real point...
opinions? is a referral bonus gonna be an incentive for you to adopt such a system? what other value-added features would be?