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Is the Megaupload closure an opportunity lost?
Friday 20 January 2012 10:18:49 by Andrew Ferguson

Details on the closure of Megaupload website and arrest of the co-founders and employees in New Zealand is covered by the BBC News website.

For those who have not heard of Megaupload previously, it is a web based filesharing site, where people can upload material and then send the resulting URL to other people. Various search options are often available, either built into a service or ran by a third party. Revenue is generated by offering only slow and limited access to files for free, but faster and multiple file downloads are often allowed for subscribers. The majority of web based filesharing systems did operate take-down arrangements, so where a copyright holder informed them content was on the site without their permission it would be taken down.

It is this revenue stream that should be of biggest interest to the media industry. Not because it is thought that Megaupload may have cost the media industry $500m in lost revenue but that Megaupload generated revenue of some $175m. If a site with user uploaded material can generate that sort of money, the distribution arms of the media industry need to get involved rather than destroy things. The battle against copyright infringement continues because people continue to find methods to get content they are interested in at a price they feel is fair, the fact that Megaupload is generating revenue shows that if the content is available people will pay something.

The media industry has not ignored the internet totally, there are plenty of services which now offer subscription based access to films and music. Alas these are tainted by exclusive deals between studios and an outlet, or content available on the service in the USA, is not available on the same service in other countries. In addition to the range of content on the legal services, the most often cited reasons for people using other unapproved sources, is these often offer better quality recordings and are free of Digital Rights Management (DRM) allowing playback on almost any suitable device.

Comments

Posted by cyberdoyle over 5 years ago

I agree, the meeja want to get digital, get real, and stop this stupid game.
And the infrastructure needs fixing so that everyone can stream and download legally.
Torrent sites are also used because people on slow connections can just leave them running for days knowing that interrupted downloads can resume.
Posted by Apilar over 5 years ago
Megaupload was very good for free users. No wait times if one had a free account and the speeds were often as high as 100Mb/s.
Posted by Somerset over 5 years ago
Too many people feel a fair price is £0?
Posted by Gzero over 5 years ago
When is Google getting arrested? When are they going to go into China and arrest the makers of the TV streaming programs? When are they going to stop this madness?
Posted by otester over 5 years ago
There ya go TB, another example of a law abidding site being attacked.

@Somerset

The price of information is £0, anything more is due to the service offered (easy than file-sharing..etc.).
Posted by mike41 over 5 years ago
I've no interest in free downloads but what does bother me is the US ability to extradite anyone it fancies, and parade them in chains even before their first court appearance -- not least from the UK.

We in Northern Ireland know all about these US policies which work in reverse. IRA fundraisers and murderers were given sanctuary for more than 30 years while America's venal politicians crawled up the arses of the Boston Irish voters.

Please don't think I condone the other side in this conflict. There's nothing to choose between 'em. Like most politicians.
Posted by undecidedadrian over 5 years ago
So I assume YouSendIt.com will be next then?
Posted by nickkcin over 5 years ago
or Filesonic, Fileserve, Oron, Depositfiles, Hotfiles etc.

Megaupload got a bit sloppy, rented a server in the US and that was what the US govt used as the excuse.

Most of the others are either quick to remove illegal files or are hosed outside the US
Posted by andygegg over 5 years ago
What really sickened me was the way the New Zealand authorities have arrested and paraded in chains and seized the assets of 4 people who are legally innocent as there's been no trial yet! Stalin lives!
Posted by The_Engineer over 5 years ago
Obviously, a Kodak moment for the media industry. Not moving with the times.
Posted by fibrebunny over 5 years ago
I wouldn't say most were that quick to remove illegal files. Many base their business model on such files. I would find repeatedly uploading content somewhat tiresome but for those on commission it must be a nice little earner as there are no shortage of those doing so.
Posted by AustinHoffman over 5 years ago
That's sad...since it's all BS...SOPA/PIPA were junk + MU arrest was unfair + I don't think swizz he has any legal connections to MU...imo it was all fabbed up to get other celebrity endorsements.

p.s. looks like someone is pissed - FBI vs ANONYMOUS video:
http://www.peeje.com/anonymous-hackers-we-legion-211/
Posted by Firefalcon over 5 years ago
MU arrest is proper suspicious, after the whole thing of MU actually gaining ground of hitting a couple of the big companies over abuse of copyright law, especially UMG who had their music video pulled without having a single ground to do so. SOPA/PIPA get shelved then next minute MU disappears.

Then we have this:
http://www.techdirt.com/articles/20120120/14472117492/mpaa-directly-publicly-threatens-politicians-who-arent-corrupt-enough-to-stay-bought.shtml

Posted by _wtf_ over 5 years ago
http://neil-gaiman.tumblr.com/post/16141055516/that-embarrassing-moment-when-you-are-caught

https://plus.google.com/u/0/117114202722218150209/posts/4GgaRiSyaTf
Posted by _wtf_ over 5 years ago
And let's not forget this is the same media industry that moved to the other side of America to evade Edison's copyright laws in the first place.
Posted by dalgibbard over 5 years ago
Team America: World Police.
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