In the same place where illegal file sharing started, the major music labels, including Sony BMG, Universal, Warner Music, and EMI, are promoting a new P2P service on college campuses across the US called Peer Impact The service is launching with an invitation-only model (a la Gmail or Yahoo 360 :) and is different from typical P2P programs, as it actually rewards users for sharing music that they’ve purchased on the Peer Impact system.

The success of Peer Impact depends largely on whether the existing P2P services that allow users to exchange copyrighted material get shut down or not — and on whether they can establish a credible brand on campuses.

At this point they seem to be facing an uphill battle. The same labels that are promoting Peer Impact are the same labels that are supporting the RIAA lawsuits against college students for sharing music. And from my quick scan on Google and eBay, I don’t see anyone offering peer impact invitations (search yahoo 360 on eBay to compare) — so most kids must still be using Kazaa