Report: The Megaupload Shutdown Has Only Caused a 16% Drop In Locker Usage…

The finding comes from a surprising source: music industry trade group IFPI, an active supporter and participant in the early-2012 shutdown of Megaupload.  In a report just published by the agency, the shutdown of Megaupload caused a mere 16 percent decline in broader locker usage, despite seemingly substantial ripple effects for rivals like Hulkshare, FileSonic, FileServe, Upload.to and Mediafire.

Ultimately, locker usage landed at around 110 million users heading into 2013, which is completely at odds with the industry narrative.  “The site’s closure had a ripple effect throughout the sector with services such Hulkshare and Mediafire quickly changing their operations to implement filtering, or dropping rewards programmes designed to encourage users to upload large amounts of material,” the IFPI reported.  “The use of these services fell sharply throughout 2012.”

The Megaupload ‘Ripple Effect…’

megaupload_ripple_effect4

15 Responses

  1. Visitor
    Visitor

    16% decline in file locker use, and a substantial increase in use of bit-torrent. Overall, piracy did not diminish one bit. Way to go!

    Reply
      • Visitor
        Visitor

        oops!
        Where’s your documentation that correlation implies causation here??
        Might this trend we’re seeing have anything to do with a more than decade long adoption of digital production, distribution and commerce by both the industry and consumer??

        Must be a slow day at the buggy whip factory huh?

        Reply
        • Visitor
          Visitor

          “Where’s your documentation that correlation implies causation here?”
          Which part of ‘funny coincidence’ did you not understand?
          Again, here are the documented facts:
          1) The MegaUplad ShutDown caused a 16% drop in locker usage.
          2) Global recorded music industry revenues rose last year for the first time since 1999!
          Oh, and you still forgot your own documentation…

          Reply
          • lroose
            lroose

            LOL
            Graphic below just crushed your funny coincidence, unless you think the use of IE and the murder rate are correlated.

          • lroose
            lroose

            I love facts, but suggesting that two facts are correlated because they generally trend the same way at the same time is a patently false way to go about it.

            The IE/Murder rate graphic is a perfect illustration of why this careless way of assigning causality doesn’t work.

          • Visitor
            Visitor

            Streaming had strong growth last year. There is little evidence that the growth in revenue was because of a shutdown of Megaupload. It could have easily been because of Spotify, Muve, and Deezer.

          • Visitor
            Visitor

            The shutdown of the world’s second largest piracy site — the first increase in recorded music industry revenues in 14 years.
            Two impossible events, according to yesterday’s pirates. 🙂
            Like I said, a funny coincidence.
            But I think most of us will agree in a year or two from now that the fall of MegaUpload was the turning point…

    • Politician
      Politician

      I like this report.
      And since google is paying for my re-election I say anyone who doesn’t use google chrome supports murderers!!!

      Reply
      • Politician
        Politician

        Sorry, my aide just informed me that I read the chart wrong.
        My position has changed anyone who uses chrome or firefox supports murder!!

        Reply

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