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  1. #1
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    Exclamation The real reason behind Megaupload bust-up

    http://www.prefixmag.com/mobile/post/60024/

    According to Digital Music News, Megaupload's new venture, MegaBox, is a "cloud-based music locker, download store, and do-it-yourself artist service." So far, partners of MegaBox include 7digital, Gracenote, Rovi and Amazon, the world's largest online retailer. Megaupload founder Kim Schmitz said Universal "knows that we are going to compete with them via our own music venture called Megabox.com, a site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings."

    Even more interesting is Schmitz boasting another service called Megakey, a solution he says will allow artists to generate income off of free downloads. While the service itself may not seem all that revolutionary, this type of forward thinking signifies the growing rift between the past and future of media distribution. In regards to traditional record companies operating in the digital age, Schmitz said that "the rip-off days are over. Artists are more educated than ever about how they are getting ripped off and how the big labels only look after themselves." It'll be interesting to see if MegaBox catches on and, if so, where this dialogue moves from there
    currently, the artists pay around 90% of total proceeds from their creative work to record labels. also, they have to pay their managers' fees, the extra stuff which the label dumps on them from their rest 10% or so. and this 10%, mostly comes from proceeds of concert tours.

    any considerable service that would upset this system and prevent labels from ripping artists to 90% rate, is, as you can understand a major threat to them.

    this is the main reason for megaupload bust-up, and the almost illegal 'example' those people are being made into. the bust up coincided right after this guy, now someone at a proliferation and reach which would allow him to set up some system that could undermine and undo the setup labels have, has declared his intentions of doing so.

  2. #2
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    and to quote someone on a thread :

    Just like RICCO act in the US regarding illegal drugs, the majority his assets are deemed to be illegally gained, so they are seized so he can't use that money to pay for his defence. That means basically all his assets are frozen, not taken away... yet.
    his all assets are frozen, so that he wont be able to defend himself, and will get the maximum possible ( that can fly ) jail time to be made an example of.

  3. #3
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    let me summarize my long-winded paragraphs in short summary for those who dont want to dwell on things for long :

    megaupload was busted because they were going to set up a service that would allow artists to totally bypass labels in a major distribution environment with major partners like amazon. this would totally take labels and their 90% cut out of the equation.

  4. #4
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    Quote Originally Posted by unity100 View Post
    megaupload was busted because they were going to set up a service that would allow artists to totally bypass labels in a major distribution environment with major partners like amazon. this would totally take labels and their 90% cut out of the equation.
    No. They were busted for what they were already doing. Period.

    Stop fluffing the conspiracy theories!

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  5. #5
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    Quote Originally Posted by GORF View Post
    No. They were busted for what they were already doing. Period.

    Stop fluffing the conspiracy theories!

    there are many other sites and many other outlets that WERE doing, and STILL doing the same.

    none of those outlets have attempted to set up a music distribution channel which would take the labels totally out of loop with BIG PARTNERS like amazon. megaupload bust coincided right after megaupload declared their intentions.

    'conspiracy theory' is the delusion of the shallow-perception idiot who cant set up links in between simple events.

    an established cartel which makes 90% cut out of every transaction in a field of industry, never lets it go easily.

  6. #6
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    Quote Originally Posted by unity100 View Post
    there are many other sites and many other outlets that WERE doing, and STILL doing the same.
    Yes and each one of them are biting the dust bit by bit.

    A number of sites have vanished since the megaupload ordeal.

    Btjunkie is just one of them: http://btjunkie.org/goodbye.html

    Month by month we will see these sites closed down by themselfs or forced to be shut down and dragged to court the story behided Megaupload is only the beginning the law always does the same "Lets go after the king pins then the followers will disappear" and its happening...
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  7. #7
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    The music service they were planning had absolutely nothing to do with it. NO question about it. It's not a "conspiracy". They were doing a lot of things illegally. However they are innocent until proven guilty in a court of law, so anything on the internet you read is speculation. You don't have any facts. The only facts are that they were arrested, shut down, and indicted.

    Have you actually read the indictment in its entirety?

    Here's a copy: http://www.scribd.com/doc/78786408/Mega-Indictment
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    Quote Originally Posted by cd/home View Post
    Yes and each one of them are biting the dust bit by bit.

    A number of sites have vanished since the megaupload ordeal.

    Btjunkie is just one of them: http://btjunkie.org/goodbye.html

    Month by month we will see these sites closed down by themselfs or forced to be shut down and dragged to court the story behided Megaupload is only the beginning the law always does the same "Lets go after the king pins then the followers will disappear" and its happening...
    Their words are something touchy. Our internet is totally changing

  9. #9
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    With the connection of politicians and corporations as strong as ever, and an election around the corner, it wouldn't surprise me that there was some political pressures applied and the outcome was NZ Swat raiding Kim Dotcom's residence, like he was a mass murderer or something.

    I think it's ignorance to imply that the mega millions the various corporations spend on lobbying elected officials, bear no fruit for those involved.

    But technology is making record labels the new dinosaurs, just waiting for extinction. Artists these days are cultivating direct relationships with their respective audiences, so it won't be long before they deliver their music direct to their fans. Lady Gaga could do that now, just on the back of her Twitter and Facebook followers alone, and other various social media outlets.
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  10. #10
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    Quote Originally Posted by cd/home View Post
    Yes and each one of them are biting the dust bit by bit.

    A number of sites have vanished since the megaupload ordeal.

    Btjunkie is just one of them: http://btjunkie.org/goodbye.html

    Month by month we will see these sites closed down by themselfs or forced to be shut down and dragged to court the story behided Megaupload is only the beginning the law always does the same "Lets go after the king pins then the followers will disappear" and its happening...
    it is the natural result, and the side effect of the grand theatrics put up for megaupload. it would happen regardless of the intentions they had. and definitely, this was an intended side effect.

    however, there is no way in hell that a few million kids/youth pirating some items, and losing 90% cut from entire music business could be compared.

  11. #11
    Thanks for posting,
    http://www.scribd.com/doc/78786408/Mega-Indictment

    Read most of it and i just get a kick out reading that kind of stuff.

  12. #12
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    I just love how they go after torrent sites for being able to search / find links to copyright content..

    Megaupload does everything to keep it from being searched, listed or found publicly - only by links, p2p sharing of links essentially are they distributed... but still get sued.. or creating their own advertising site so they can make the most off providing illegal content.. I mean because being the 13th largest site on the internet, no business man would EVER think to capitalize on that... never.

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  13. #13
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    It was also coincidental that the NZ Swat raided Kim Dotcom's house, just after SOPA was shot down in flames and died a very public and ugly death.
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  14. #14
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    Quote Originally Posted by mg- View Post
    I mean because being the 13th largest site on the internet,
    couple that with big partners like amazon, and say 'i am going to launch a music service that takes labels off the loop'

    and you got your swat teams in your house.

    that's what happened.

  15. #15
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    there's usually a large FBI raid every couple years.. The first I remember was dec 2001 though-when drinkordie, fairlight, etc busted - and many groups "died off" or dissapeared / came back under another name after that. Then more small ones happened 03 05 07 pretty much. Scene Groups are not the focus anymore, these types of operations would be.
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  16. #16
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    Quote Originally Posted by mg- View Post
    there's usually a large FBI raid every couple years.. The first I remember was dec 2001 though-when drinkordie, fairlight, etc busted - and many groups "died off" or dissapeared / came back under another name after that. Then more small ones happened 03 05 07 pretty much. Scene Groups are not the focus anymore, these types of operations would be.
    the more they push the faster they will fail.

    all it takes is some service popping up in russia, or, * gasp * in china. noone would be able to do anything or tell anything.

    and, because of the moronic proceedings of the copyright cartel in usa, russia, china et al started a major push for international control of internet.

    a moronic and self centered industry who only employs 200,000 people in usa ( and most of them are fast food employees, cleaners etc) is costing the control of internet for u.s.

    serves them right.

  17. #17
    I don't know really what was the main reason or that .. because there are thousands such websites like megaupload in internet. There are a big amount of them in the US. May be it is the game on the high level with big money!
    IMHO
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  18. #18
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    Quote Originally Posted by FokeBox View Post
    I don't know really what was the main reason or that .. because there are thousands such websites like megaupload in internet. There are a big amount of them in the US. May be it is the game on the high level with big money!
    IMHO
    megaupload was the 13th largest site on internet. all included. imagine what would happen if it suddenly unleashed a new music distribution service that takes labels out of the loop. (unlike itunes). even itunes would be undone in a matter of months.

  19. #19
    All said and done, megaupload was being used for doing all kinds of illegal stuff and it was matter of time before law clamped down on it. Megaupload's reasoning might gain some sympathy from public but I think it will be a poor defense in the court

  20. #20
    soon we will have another website like this. megaupload was great.

  21. #21
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    someone in russia or china will do it. and noone will be able to do anything against it.

    self-destructively stupid, copyright cartels are.

  22. #22
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    Quote Originally Posted by unity100 View Post
    megaupload was the 13th largest site on internet. all included. imagine what would happen if it suddenly unleashed a new music distribution service that takes labels out of the loop. (unlike itunes). even itunes would be undone in a matter of months.
    Hi, I could be wrong but I heard that the investigation of MegaUpload started before he came up with the idea of MegaBox (the music distribution service).

  23. #23
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    Quote Originally Posted by FTN-Kevin View Post
    Hi, I could be wrong but I heard that the investigation of MegaUpload started before he came up with the idea of MegaBox (the music distribution service).
    yes. but you can be sure that investigations to any such noticeable filesharing/download service are ongoing without public knowledge even now. there's rapidshare and many more.

    the deal is, shtf right after the music distribution service announcement for megaupload.

  24. #24
    they busted because they illegally shared protected data like music, movies, etc.

  25. #25
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    Regardless of the final conclusions, so the action, all the free space in a catastrophe.

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