Good idea, but I can't see it wiping out copyright infringement over the internet. Music is still going to be downloaded illegally. I don't see that having much of an affect on music producers. Even if the system stopped producers downloading from You Tube, they'll find new ways of getting the music for free.
Though, I hope it succeeds so then all these lames give up on production, as they are such tight asses they would rather spend their weekly allowance on booze than a record to further their career(that's in regards to all aged producers, 'allowance' makes it sound like pocket money I'm on about).