Does Ad-Supported Music work?

Lucas Gonze has published an interesting article about the problems with Ad-Supported Music on the net. He re-published the article recently on alleyInsider.com and the comments there are absolutly worth reading if you're interesting in the online music ecosystem.
The author points out that Ad-Supported music is a cool thing on the web for consumers but the catalog fees wanted by the labels could kill this approach. The important points identified by most users are a high volume and good deals with the majors if you're using their catalogue - nothing new but still interesting to read and follow the discussion.