I've said it many times, I'll say it again: as long as copyright laws prevent such content from being shown internationally (and not only to users in the USA), I'll consider these types of projects crap. Especially when it comes to music videos, which are little more than promotional vehicles for the music itself.
If I can't even see the video for a new single on some record - simply because I live somewhere other than the USA - I'll conclude that the music labels consider me a second degree user and I'm not going to bother paying for that same record. I know that this doesn't seem particularly relevant to users who can freely enjoy the content, but trust me, there's a lot of us out there who are simply getting angrier every time we hear of a really cool new video site that doesn't work for us.
Secondly, the labels have already signed so many deals for music video distribution that another such project seems superfluous. MySpace Music and Imeem come to mind; Last.FM has a deal with Universal, and it has plans to have all music videos in their library some day. If the major labels want to create the ultimate music video destination, they need to understand that today you can't sell people the same content over and over; if you want people to buy music, you need to try harder, and give something extra for free.