Thoughts on the Megaupload Bust
Saturday, January 21, 2012 at 12:27PM CORRECTIONS: My bad -- turns out I jumped to conclusions in my lust to post on this seductive story. Just for starters, Kim Dotcom (a) was merely renting the mansion with intent to buy and (b) evidently may not have made all or even most of his fortune from Megaupload. This doesn't change my suggestion to the movie industry, so I'm leaving the column up, with appropriate hems and haws. You might, however, have more fun reading a fabulous new article by Sean Gallagher of Ars Technica, who dug deeper and struck platinum. Turns out my hint that Mr. Dotcom might be trying to emulate Bond villains wasn't the half of it.
Dare I suggest they ought to turn this into a movie?
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Thought for the day. The Megaupload bust reads like a comic book on the subject of how rich you can get by distributing movies for free. Their business model was to attract maximum traffic by hyping the FREE part, while simultaneously selling premium accounts and of course selling advertisements.
This appears to have been hugely lucrative. Mr. Kim Dotcom, head of the Megaupload empire, inhabited a huge mansion with secret, armored safe rooms and other super-toys that would make a James Bond super-villain jealous, all financed by giving stuff away.
Now over to you, Hollywood. Forget for a moment how much you hate Megaupload for allegedly stealing your content. Think instead about how much you envy them for getting filthy rich in the process...
And hold it right there. Instead of merely hating and envying them, what if you actually competed? You would, of course, put their likes out of business overnight. While getting even richer than them.
Golly, wouldn't that be easier than hiring Chris Dodd to bribe Congressmen to enact dumb laws that earn you the hatred of film fans everywhere -- laws like SOPA that, even if they were to pass and actually succeed in suppressing piracy, would merely make your onetime fans seek out other forms of inexpensive online entertainment?
And wouldn't it be more profitable to court your billions of fans in China, India, Pakistan, Indonesia, Brazil and elsewhere -- with easier ways of watching your films they can actually afford -- rather than ceding this mind-boggling market to the likes of Kimdotcom?
One day, one of your kind will wake up and do it, getting far richer than the rest of you put together, Lords of Hollywood.
Why not now? First one in gets the lion's share.
Just a thought.

