It’s All About the Money:The “Business” Model of Rogue Cyberlockers
Rogue cyberlockers aren’t just distribution hubs for stolen movies and TV shows –
both the userswho upload content and the operators who run the sites can earn money from doing so. AsInternet video traffic grows, the threat from rogue cyberlockers that profit from stolen content is rising rapidly.
Rogue Cyberlockers Are a Serious and Growing Threat
Internet Video
–
Legitimate and Illegitimate
–
Occupies a Growing Share of Global InternetTraffic
. 37% of all Internet traffic globally is now Internet video (including content downloadedfrom cyberlockers), with the volume expected to grow 48% annually through 2015. Incomparison, P2P currently holds 40% of all consumer Internet traffic around the world, and isprojected to grow 23% annually through 2015. Global Internet video traffic surpassed globalpeer-to-peer (P2P) traffic in 2010, and by 2012 Internet video will account for over 50 percent ofconsumer Internet traffic.
[
Vast Majority of Rogue Cyberlocker Traffic is Infringing
. Estimates show that 73.2% of non-pornographic cyberlocker site traffic is copyrighted content being downloaded illegally.
Users Can Make Money By Uploading Stolen Movies
to Rogue Cyberlockers…
“Affiliate” Programs
Pay Uploaders When Files are Downloaded Many Times
. Rogue cyberlockersfeature
“affiliate” or “partner”
programs that pay uploaders cash for every thousand downloads
of uploaded files. Putlocker.com exhorted users to “get p
aid for uploading good content that
people want to see.”
Uploading.com promoted the ease of earning money by uploading files:
“
Now every time someone downloads your file you earn up to 2 cents. Relax and watch themoney flow!
”
Larger Payouts Reserved for Larger File Sizes
–
Consistent with Films and TV Shows
–
andEnglish-Speaking Countries
. Fileserve noted: “We pay up to US$25 per 1000 do
wnloadsdependent on file sizes;
” in fact, it pays as much as 50 times more for movie
-sized (450-2048 MB) files downloaded from the U.S. than small (1-50 MB) files downloaded fromelsewhere.
Uploading.com’s FAQs advise that “
users from English-speaking and Central
Europe countries bring the highest profit.”
Rogue Cyberlockers Encourage Users to Circulate Links Widely
–
Even to Strangers
–
toEarn More
. Fileserve and Bitshare both wrote: “
You can make money by sharing your links with friends, family and even strangers!
” Bitshare continued: “
To make more with our affiliate program, you as an uploader shoul try to get the highest download and salespossible.
…
Upload files only if you intent to promote them. Dont waste our space withfiles, if they dont get any downloads.
“Putlocker wrote: “
Share your uploads witheveryone you know.
…
The more people are exposed to your links, the more you earn!
”
…And
Rogue Cyberlockers Make Money by Inducing Users to PurchaseSubscriptions
Rogue Cyberlockers Make User Experience Onerous for Those Wishing to Access Content forFree
. Rogue cyberlockers induce users to subscribe to the site by restricting download speedsfor
“free” accounts
, as well as limiting the number of files users are able to download per day.
Fileserve’s site cautioned: “
Anonymous and Free user need to wait a bit before downloadingeach file. Premium users will able to start downloading instantly.
”
For Faster or Multiple Downloads, Rogue Cyberlockers Charge Up to $150 for “Premium”
Accounts
.
Rogue cyberlockers profit from selling “premium” subscriptions
that typically allowusers to avoid restrictions on download speed, intrusive advertising, and artificially-imposedwaiting times between downloads; and to download multiple files at once, upload larger files,access unlimited storage space, and store uploaded files for longer periods. Bitshare wrote:
“
With a Premium Account you can download without any waittimes and limits. Just open aBitShare Link and the Download will start!
” “Premium” subscriptions typically sell for $9 to $150
depending on the length of the subscription.
[MPAA analysis; for examples see Fileserve.com, Filesonic.com,
Wupload.com,etc.; Bitshare Affiliate FAQ, accessed 9/22/11]
Rogue Cyberlockers Pay Users Who Attract New Premium Subscribers
. To further incentivizepremium subscription sales and to increase traffic, rogue cyberlockers provide referralcommission as much as 60-70% of a premium subscription to resellers. Rogue cyberlockers alsooften provide referral commissions of up to 10% of the cost of a premium subscription to resellers.
Fileserve wrote of this feature: “
No matter the download links are yours or from other Fileserveusers, anyone that visits your site and buys our premium account, you will get 5% of the sellingprice. Start make good use of your website traffics and earn big money now!
” Bitshare echoed:“
No matter if download link is yours or you have found it elsewhere! Post interesting downloadlinks in your site, bl
og or forum and earn big money.”
To Earn More, Uploaders Are Urged to Get More Users to Subscribe
. Uploading.com
wrote: “Obviously, high sales volume would raise your account status. If next to no one
from the users who download your files obtains a premium account from us, then file
distribution to different audience is something that’s worth thinking about.”
Putlocker.com echoed:
“Users who promote our links exclusively, via multiple traffic
sources, and have high conversion ratios, a
re rewarded with higher earning levels.”
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