Great concept!
This is a great idea! It will bring audio artists more exposure than anything else: best exposure is through flash, so what would be better than a flash about the music? Animation and audio need some work. While I think the animation part is optional, it serves the cause, you should really do something about the audio! Needs better quality. Also, you should work on your talking, I'm sure there are voice actors who would love to help you out!
Now, I'll let some input from the bbs flow into this review, because it's important for your concept. What I didn't like was the the tight margin you drew. It's ok imo to keep this open only for regulars. It is a way to determine dedication, especially to this site. I didn't like the regulation of music being streamable, complete album and with cover artwork. The grade of seriousness can't be measured in the fact someone compiles his music to an album/ep. For one anyone can do that and for another, there are artists on newgrounds who fit their music to the needs of different things, like ... well you know: movies and games. They don't want/need their music to be displayed on an album like compilation, but some of them do awesome stuff as well. This point seems to be unnecessary.
But I won't end this wall of text without saying that this could be the first step to something great!