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File Sharing is Big Business
Bigger than iTunes.
The pirate hunters are trying to expand their business. And in so doing have to sell the idea to copyright holders. And show the latter how profitable it really is. And that profitability exceeds all previous expectations.
The pirate hunters can regularly turn a profit for the copyright holders that's as great or greater than revenues for certified gold records.
This PowerPoint presentation was recently used by DigiRights Solutions to ply their trade with the copyright industry.
DRS target approximately 5,000 file sharers per month per title. 25% of those contacted pay up without asking questions. They're told they have to pay €450 per offence. DRS keep a walloping 80% of the booty for themselves and turn over €90 per incident to the copyright holders.
But copyright holders make only €0.60 per legal purchase.
If DRS track 5,000 file sharers per month per title and 25% pay up without protest then the revenues to the copyright holders represent 150,000 units in online sales - the total sales needed in Germany for a gold record award.
And that's per month. Ernesto writes:
DRS and partners are by no means interested in protecting the rights of artists or how to deter people from sharing copyrighted work. It's a solid cash machine.
TorrentFreak: Illegal Downloads 150x More Profitable Than Legal Sales