Fines for torrents are 150 times more profitable than selling content

    As calculations show, for media corporations, the business model of penalizing pirated content can be much more profitable than selling the same content in a licensed form. Such calculations (the .ppt file in German) are provided by DigiRights Solutions, which offers its services in automating the capture of pirates (she developed special software that works in conjunction with a torrent tracker).

    The fact is that in developed countries the fine for pirated content is very large. Each illegally downloaded file can bring the copyright holder about € 90, if you calculate and sue the “attacker”. According to DigiRights Solutions, a company can earn 150 times (!) More money by monetizing content in this way, and not through online stores.

    It is natural that some publishers are gradually starting to switch to this more profitable business model and actually provoke piracy of their content. There are many options. They themselves can upload content to peer-to-peer networks ( there are already precedents ). They can advertise pirated content on various forums for the same purpose. And finally, they can open supposedly pirated services (torrent trackers, proxy servers) or pay them for cooperation in order to maximize the potential income from subsequent fines.

    It is enough to catch 5000 pirates, of which 25% will pay a fine (as German practice shows, it is 25% of users who agree to pay without objection and without bringing the case to court), and the copyright holder will receive the same income as from the sale of 150,000 copies of this content through legal score. You understand that catching 5,000 pirates is much easier than finding 150,000 honest buyers.

    DigiRights Solutions offers corporations an automated pirate trapping system so monetization of pirated content can be streamlined. The system works according to this scheme.

    via TorrentFreak

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