ShareTheMusic.com is an innovative and unique project since it does not distribute music files but it acts as a middleman among those who are willing to share their music - by enabling other Internet users to listen to it.
People having a particular piece of music on their hard disk can broadcast it to only one listener at a time, and it cannot be copied by saving to the disk of another user.
There is apparently a club in Berlin, called Breipott which plays only music offered under terms of one of the Creative Commons licenses and including only licenses which fit the definition of free as in freedom software (so basically, the four freedoms).
They've just had a party on July 25 celebrating "the adaption of the latest CC-BY-SA (version 3.0) to the German jurisdiction".
Interesting story about death of the CD (or I would rather say Music CD) and what happens next. The CD seems to be the last of what represents the old music industry. The new music industry which is being born these years doesn't care about the CD or whichever particular medium. It's all digital and it's all over the network. And advertising is driving the business, not CD sales.