Whilst I know this post isn't strictly related to the topic, I'd like to give you my thoughts on piracy as I'm an Anti-Piracy/Legal Consultant and some of you could find the below interesting particularly considering how the conversation has changed in the last page of this thread.
On the subject of Piracy, it's a highly profitable internet business and has become increasingly more so in the last 5 years particularly with the advent of one-click file hosting and Pay Per Click (PPC) based affiliate arrangements for uploaders. But why exactly is there so much pirated content?
Technologically adroit and coordinated piracy scenes can earn a great deal of money from uploading unlicensed content and that's partly influenced the noticeable shift away from Torrents to one-click file hosting services. In fact, check the top 1000 websites by traffic (compiled by Google/DoubleClick):
http://www.google.com/adplanner/static/top1000/ You'll be able to see that 5 file hosting services have considerably more traffic than PirateBay (155) and they are as follows: 4Shared.com (59), Megaupload (73), Rapidshare (74), & Mediafire (79), Hotfile (83).
You may be interested to know that there are approximately 100 major pirate scenes (predominantly in Russia, former Eastern Bloc countries and Asia) who collectively upload hundreds of thousands of infringing links each day.The scenes use highly sophisticated auto-uploading software. All of them upload to file hosting services with lucrative Pay Per Click/Affiliate arrangements in place. The scenes are certain to earn money because they all have websites which receive colossal amounts of traffic each day. Here are some of the one-click filehosting affiliate schemes with URLs.
Fileserve.com Affiliate Scheme:
http://fileserve.com/partner-info.php - A pirate can potentially earn up to $25 for 1,000 downloads. Might not sound a lot initially but as stated before, each scene has their own website, which has thousands of unique visitors per day. Consequently,it would be extremely reasonable to infer that they can generate large amounts of traffic to each infringing link – Upload 1,000 copyrighted links to Fileserve which have all been downloaded at least 1,000 times and a scene has potentially generated $25,000 (that’s a drop in the ocean compared to what Fileserve, Filesonic, Megaupload, Hotfile will turnover however). This is not fantasy but a distinct possibility!
More of the same below:
Megaupload Affiliate Scheme:
http://megaupload.com/?c=rewards Filesonic Affiliate Scheme:
http://www.filesonic.com/affiliate-program Depositfiles Affiliate Scheme:
http://depositfiles.com/en/earn.htmlNetload.in Affiliate Scheme:
http://netload.in/index.php?id=39 ...Ad infinitum.
Therefore, does filesharing affect the creative industries? Of course it does. I provide piracy protection (removal from one click file hosting services, torrents etc) for over 60 clients’ in the music (some large IFPI record label clients' & many smaller dance music labels) & adult entertainment businesses. The small music labels are acutely affected by piracy because the margins for profit are so small in the first place. Whilst some of my smaller music clients’ may sell 1,000 EPs on Beatport, they have to give a considerable % of that revenue to Beatport, pay the artist and all other associated costs which consequently leaves very little in profit and internet piracy further exacerbates this problem. Hence, there's a very fine margin between profitability and making a loss. Nevertheless, all the labels I work for have noticed tangible increases in sales/profit when contemporaneously using my service.
Of course, file sharing is perhaps even more pernicious for porn. For instance, even in today's more liberal society, an extensive porn collection is not something that most individuals would freely admit to or proudly display in the living room for all to see. Most of the people I know who paid for porn in the past, did it because there were simply no other means of obtaining hard-core pornography (particularly for free!). In fact, some of them used to pay up to £500 per year in order to get their porn fix. Now they don't have to pay at all because a lot of it is freely available on one-click file hosting services like Filesonic, Fileserve, Hotfile, Rapidshare etc. Moreover, they don't have to physical store porn where girlfriends, wives & parents could potentially find it. Yet, I know for a fact, that they'll purchase DVDs/Minutes on Gamelink if they cannot find the DVD/Scene on the internet for free!
Regardless of the above however, piracy can be mitigated as most of it is uploaded to filehosters who have to remove that content if they receive a DMCA/Copyright Notice. Furthermore, I have database access to a dozen filehosting services so can delete thousands of rar files each day myself (Vladimir at FirstAnalQuest can attest for the work I’ve done in the past). Nonetheless, whilst many porn producers bleat about piracy constantly, many are simply unwilling to actually pay for it and prices for services like mine are far from onerous. That’s partly the reason why there’s so much unlicensed content out there available for download.
James Brandes - LL.B(Hons), LL.M, MSc(Econ)
Anti-Piracy Consultant
Digital Copyright Consultancy
Email:
digitalcopyright@btinternet.com Twitter:
http://twitter.com/DigCopyright LinkedIn:
http://uk.linkedin.com/in/jbrandesdigitalcopyright