Muxtape, a startup that quickly became a favorite of the Tumblr-set, has taken a nose dive, thanks to the machinations at RIAA. There are lot of folks bemoaning the loss of the service. To them, I have one word: 8Tracks.

I talked to the New York-based startup’s founder, David Porter, formerly of Live365, a few weeks ago and he walked me through the service. I have been using it sporadically and, well, it works better than Muxtape. (Thrillist thinks so, too — take their word over a Web geezer like us.) Essentially, 8tracks allows you to upload your own tracks and create a mix. Of course, you can create mixes from a library of tracks uploaded by others. Drag, drop, play!

How long before RIAA calls on these guys? They have applied for a small webcaster license, but that won’t be enough if the company gets popular. Peter Kafka says they they will “end up having to pay the same rates as the big guys, which basically translates to about 2 cents per listener, per hour this year, and will jump to 3 cents next year.” Porter remains undeterred!