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Why MegaUpload was really shut down...

Discussion in 'BlackHat Lounge' started by Charlie Sheen, Jan 24, 2012.

  1. Charlie Sheen

    Charlie Sheen Newbie

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    In December of 2011, just weeks before the takedown, Digital Music News reported on something new that the creators of Megaupload were about to unroll. Something that would rock the music industry to its core.

    I present to you... MegaBox. MegaBox was going to be an alternative music store that was entirely cloud-based and offered artists a better money-making opportunity than they would get with any record label.

    "UMG knows that we are going to compete with them via our own music venture called Megabox d-o-t c-o-m, a site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings," MegaUpload founder Kim 'D-o-t-c-o-m' Schmitz told Torrentfreak

    Not only did they plan on allowing artists to keep 90% of their earnings on songs that they sold, they wanted to pay them for songs they let users download for free.

    "We have a solution called the Megakey that will allow artists to earn income from users who download music for free," D-o-t-c-o-m outlined. "Yes that's right, we will pay artists even for free downloads. The Megakey business model has been tested with over a million users and it works."

    digitalmusicnews d-o-t c-o-m /permalink/2011/111221airvinyl
    plus.google d-o-t c-o-m /u/0/111314089359991626869/posts/HQJxDRiwAWq
     
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  2. bk071

    bk071 Jr. Executive VIP Jr. VIP Premium Member

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  3. kazhkaz

    kazhkaz Jr. VIP Jr. VIP Premium Member

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    This may be just a coincidence ;)
     
  4. dkdemon

    dkdemon Newbie

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    Very interresting read, this could have something to do with it :)
     
  5. NapsteR

    NapsteR Jr. VIP Jr. VIP

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  6. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

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    Thats the sort of shit the industry needs to do (maybe 90% is much, but at least 50% should go to the artists) or maybe 90% should go to the record company for the cost of the production and promotion of the album and after that is paid of the artist should get like 70%.

    This world is so f@cked up man.... :chairfall
     
  7. Roparadise

    Roparadise BANNED BANNED

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    So your totally ignoring the fact that Megaupload was operating illegally,and think its a conspiracy? Please take this to a Alex Jone's forum or DP.
     
  8. Virus1

    Virus1 Supreme Member

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    It is so hard to give 90% to the artist.
    It might be possible but I just do not see it.

    Check this out. This is for a CD. Just hypothetical.
    An artist performs and gets 90%

    Then you have all these people to pay:
    1) Guys that works the recording equipment
    2) Guys that edit the music and actually make a track.
    3) Guys that come up with ideas to market it.
    4) Guys that do the graphics work
    5) Guys that do the duplication
    6) Guys that do the actual selling to walmart and big corp
    7) Guys that do the accounting and keep track of sales
    8) His Manager.


    There are more people but this is just at the top of my head.

    And you want to pay them all with the remaining 10%.

    I just do not see this happening.
     
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  9. asi_av

    asi_av Regular Member

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    i think megabox build so artist do not need to pay 3-8
     
  10. Dtape

    Dtape Registered Member

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    I don't get why that is a reason to shut down? They did not shut down theirselves, they got shutdown. You're title is misleading.

    Nice info though, thanks for the share :)
     
  11. muxmkt

    muxmkt Power Member

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    Record labels would loose money, so they made megaupload shutdown.

    This is the point
     
  12. ILoveCSharp

    ILoveCSharp Regular Member

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    I think next one is youtube lol :D
     
  13. gb5000

    gb5000 Regular Member

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    That business model would not be able to sustain itself.

    First of all, coming from someone who's entire life has revolved around music, you have to understand how the industry actually works before trying to take on a venture such as megaupload tried to do.

    You guys forget that not all artist write their own material. Some artist actually buy songs from A-List writers and also the producers who get payed for things like radio play and digital album sales.

    Not all artists (and rightfully so) can write and produce their own material. So they then hire the services of PROFESSIONAL writers and producers, who not only charge and upfront fee, but also equally share the rights of publishing (which is money that comes from things such as radio play, TV synch licenses, and digital album sales as well as digital streams from Pandora and services like it).

    You can't just give 90% of all recurring income directly to the artist like that, as it would trigger a TON of litigation from other songwriters and producers who depend on royalties from publishing and synch fees.

    In other words, that system would FAIL VERY fast. Its not sustainable as an "industry" in and of itself, since only one side of that industry benefits from that model.

    That dude has no clue how the industry is run or how its money is made.

    Just wanted to enlighten you guys, as some of you are judging this as a conspiracy when that is far from the case.
     
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  14. viralmoney

    viralmoney Junior Member

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    LOL I always find it funny when you have Charlie Sheen and Mega Box in the same sentence :D
     
  15. G-S-T

    G-S-T Executive VIP Jr. VIP

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    *gets popcorn* *awaits anonymous response*
     
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  16. oxonbeef

    oxonbeef BANNED BANNED

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    You surely aren't talking about Kim Dotcom with that statement are you?
     
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  17. gb5000

    gb5000 Regular Member

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    Yes I am. Why you ask?
     
  18. G-S-T

    G-S-T Executive VIP Jr. VIP

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    Im pretty sure an artist would be aware that they didn't own the full rights to their music in such a situation. The responsibility would then be with the artist to make sure that they distributed their cut to the others involved in the production of said piece of music.

    Im also pretty sure that megaupload would be able to automatically handle the equal distribution of funds related to said track. After all, its just a matter of dividing 1 number by another and making sure that the artist provides full disclosure as to who owned the full rights to the track.

    It would seem that if this new megaupload venture went through, it would reshape the music industry, hence recent events.
     
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  19. fun4uoc

    fun4uoc Jr. VIP Jr. VIP Premium Member

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  20. oxonbeef

    oxonbeef BANNED BANNED

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    1. He made $42 million from Megaupload in 2010 alone.
    2. Megaupload reportedly gets 50 million visitors a day.
    3. Megaupload has made $175 million since 2005.

    Because the facts speak for themselves.
     
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