MegaUpload? Dead. RapidShare? Dead…

As of Tuesday morning…

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6 Responses

  1. Anonymous

    Yea but there are like 200 different ones still currently operating, so……

    • Faza (TCM)

      None of them are doing it for charity, methinks.

      Taking RapidShare’s history posted on Wikipedia with the requisite grain of salt, the reason for the shutdown seems to be that without infringing uses, they didn’t have much of a business.

      MegaUpload is a whole different story, as we all know.

      It would appear that going after the money is a sensible way to deal with such services. There are two fundamental models at play: advertising and premium subscriptions.

      On the advertising front, we’re seeing developments like the Trustworthy Accountability Group initiative that may serve to starve pirate sites of premium advertising, leaving them to scrape the bottom of the barrel.

      Premium services may be paid for either through a payment processor (credit card company, PayPal or some such) or by Coin (of preferred flavour). Payment processors have all sorts of compliance issues to deal with and need not want to deal with nuissance clients (provided that payments for pirate services are considered illegal transactions, as they should be, and investigated as such – the payment processors would likely be in the clear, but would have to deal with numerous investigation, hence “nuissance”). Coin is an unattractive proposition for two reasons: only a minority of customers will be willing to go through the risk and hassle of dealing in Coin and the volatile value of Coin (to say nothing of the risk of your exchange going dark, along with your Coin) means difficulty in securing cash flow for the pirate site.

      Lack of money in the system will not discourage all pirates, but will whittle their numbers down considerably. Combined with other measures, like blocking and prosecution (where feasible), online piracy may well be reduced to the marginal phenomenon it was before Napster.

  2. Kerfuffle

    wow, this has to be the laziest article i’ve ever read here, the ultimate tl;dr of reporting!