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ExtraTorrent.cc > Articles > Companies Still Fail to Monetize Piracy

Companies Still Fail to Monetize Piracy

Companies Still Fail to Monetize Piracy

Added: Friday, May 15th, 2015
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, www.extratorrent.cc, 2015
Financial results of Rightscorp, a piracy monetization company, show that monetizing piracy isn't as easy as it expected. Rightscorp did a great job by protecting more copyrights, attracting more Internet service providers to cooperation and settling more court cases, but it still ended up with an operating loss of almost $930,000.

Rightscorp’s mission is to turn piracy into profit: they cooperate with copyright owners, track file-sharers and send them a settlement offer to avoid lawsuits. There are a lot of copyright trolls out there, but Rightscorp only asks for $20 per case of violation, which is a relatively cheap deal in comparison to others. The only problem is that Rightscorp still can’t make its operation profitable: back in 2014, it lost $3.4 million, and the most recent results don’t seem much better.

As for the fundamentals, Rightscorp currently has 1.5 million in its authorized copyright catalog, but only 256,000 are in its full system. 233 Internet service providers cooperate in the scheme at the moment, and the company has access to 15% of all homes in the US. As a result, Rightscorp has closed 200,000 cases of copyright infringement in the past two years.

Reported revenue for Q1 2015 was a little over $300,000, but reported loss was almost $930,000 due to the costs, including fees it pays to rightsowners (half of revenues), wages and legal costs. Aside from the usual advice required for company operation, Rightscorp is being sued over the methods employed to extort cash from alleged pirates.

It remains unclear whether Rightscorp will eventually be able to monetize piracy – perhaps, increased volumes and economies of scale can help.

Thanks to TorrentFreak for providing the source of the article.

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Date:  Friday, May 15th, 2015

Comments (1) (please add your comment »)

posted by Trusted UploaderSite FriendET loverSupermanmen (2015-05-16 02:29:04)
analogkid6103 avatarI went over this not long ago in these pages. It is a matter of survival for rightscorp and the antiquated business model they hold so dear.
And Its not unsubstantial, but if they lose and things change without them running the program.
They will disappear and they know it. So its worth it to them to spend everything on it.
Cause if they win they will get everything back and than some.
But if they lose they will only be a bad memory of the days when every thing was far to expensive.

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