mp3.com tried something very similar without music industry permission in 2000. It was brash and very forward thinking; they pre-ripped a ton of stuff, would identify your CD when you put it in and then unlock it for you to be played through the site. My buddy's brother was working there at the time and when he told me they were trying this, my immediate reaction was "They are gonna get sued into oblivion." Which, of course, they did.

http://news.cnet.com/2100-1023-235953.html