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  1. #1
    Join Date
    Jul 2002
    Posts
    3,352

    File hosting providers - Do they really make money?

    Do people actually pay monthly subscription to company such as MediaFire? How do company like MediaFire or Rapidshare make money?

  2. #2
    Join Date
    Aug 2004
    Location
    Dallas, TX
    Posts
    3,507
    Food for thought: http://arstechnica.com/tech-policy/n...m_campaign=rss

    MPAA sues Hotfile for "staggering" copyright infringement
    By Jacqui Cheng | Last updated a day ago

    File locker Hotfile.com has found itself the next target of the Motion Picture Association of America's war on file sharing. The MPAA announced Tuesday that it had filed a lawsuit against Hotfile on behalf of 20th Century Fox, Universal Studios, Columbia Pictures, and Warner Bros. accusing the site of direct infringement, facilitating copyright infringement "on a staggering scale," and raking in the cash while doing it.

    The MPAA argues that Hotfile not only encourages its users to upload illegal content, but actively discourages them from uploading files for personal use, because the site offers incentives for users to upload the most popular files (which invariably end up being copyrighted movies). And because the site charges membership fees before people can download the content uploaded by others, the MPAA says Hotfile "profits richly while paying nothing to the studios" for the bootleg files.

    "In less than two years Hotfile has become one of the 100 most trafficked sites in the world. That is a direct result of the massive digital theft that Hotfile promotes," MPAA general counsel Daniel Mandil said in a statement. "The theft taking place on Hotfile is unmistakable. Their files are indeed 'hot' as in 'stolen.' It's wrong and it must stop."

    The charges in the MPAA's complaint include direct infringement (as Hotfile is the one distributing the works), inducement of infringement, contributory infringement, and vicarious infringement (for making a profit on infringing files). The DMCA's Safe Harbor provisions should protect site operators from being held liable for content uploaded by users, but the MPAA claims that the site continues to compensate its users for uploading popular files even after having received takedown notices. If Hotfile admins had direct knowledge of infringement, but failed to do anything about it like the MPAA says, then Safe Harbor isn't going to provide any protection.

    The other catch is that Hotfile doesn't provide any sort of index or listing of the files that have been uploaded by members. Instead, the site relies entirely on third-party sites to link to the files, and the MPAA argues in its complaint that "almost all of these link sites are blatant pirate sites." In fact, the complaint alleges that Hotfile paid various sites to promote its links, knowing that most of the files being linked were illegal.

    The lawsuit against Hotfile is hardly surprising; content creators are constantly fighting traditional torrent sites and other P2P offerings, and have increasingly gone after cyberlockers and cloud storage solutions for helping users trade copyrighted music, movies, and TV shows. The MPAA wants Hotfile to be shut down, of course, but would also like a cut of whatever juicy profits might be found.
    Be creative, come up with a better idea, file hosting, video hosting, image hosting, that was hot 6 years ago.
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  3. #3
    Join Date
    Jul 2007
    Location
    Ashburn, VA
    Posts
    1,314
    I personally have a 20 GB Google Docs account. It is very affordable ($5 a year!) and I don't see my files getting lost anytime soon, especially on Google's network.

    I think people are willing to pay. It's easier to lose a flash drive than to lose a password.
    Preetam Jinka

    Isomerous - High performance web services for business and individuals.
    Bitcable Colocation, KVMs, cPanel hosting, Oracle expertise, and more.

  4. #4
    I thought about it too. The threat of legal consequences and harassment from the MPAA/RIAA kept me from following through with it however they are accusing Hotfile was doing advertisements (could be a advertising network) and doing deals with pirate websites to encourage others to upload. I think the monetization of allowing the uploader to make money off of the files they post and get others to download looks really bad on them too. It's just a giant legal mess.

  5. #5
    Join Date
    Feb 2005
    Location
    Toronto, Canada
    Posts
    5,158
    Some people do pay it all depends on what they are using the service for..

  6. #6
    They do, but it's difficult to become one of those extremely popular file hosts. Always a balancing act of bandwidth use vs profit. Successful file hosts generally have traffic shaping rules in place to prevent runaway BW usage. Finding the right advertisers can be difficult as well--file hosts are invariably popular becuase they allow users to upload pirated wares--advertiser networks such as AdSense disallow such sites.

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