A Tale of Two Pirates? Daniel Ek (uTorrent) and Kim Dotcom (Megaupload)

Perhaps it is ironic that Kim Dotcom is the arch nemesis of the record industry while Spotify CEO Daniel Ek is celebrated as the former Co-Founder and CEO of uTorrent. uTorrent is described as “the world’s most popular BitTorrent client with more than 100 million downloads” on Mr. Ek’s Wikipedia page.

This week the embattled Dotcom is said to have given up his stake (and shares) in his much ballyhooed digital music company Baboom.

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In the screen shot below from the TechCrunch, “CrunchBase” we see the BitTorrent cast of characters we’ve gotten to know so well sharing duties at uTorrent.  Here we have Bram Cohen, Matt Mason and of course former uTorrent Co-Founder and CEO Daniel Ek (still prominently displayed).

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In many ways both Ek and Dotcom represent the same devaluation and destruction of the arts by building personal fortunes as the result of monetizing the work of creators, without paying those creators for their work.

The cost of music is not in the distribution of music, the cost of music is in the creation of music.

Megaupload and uTorrent have monetized the mass scale distribution of infringing works for profit. In other words, infringement as a business model where the cost of goods goes unpaid and creators are uncompensated. uTorrent is self described as “a free-of-charge, ad-supported, closed source BitTorrent Client.” Megaupload and uTorrent have both relied heavily on advertising for revenue.

Mr. Ek like his previous cohorts Bram Cohen and Matt Mason would like to say that BitTorrent is not a piracy platform, however multiple independent studies have repeatedly concluded that 99% or more of the files being distributed via BitTorrent are in fact, infringing.

All of this of course points to the fact that Megaupload and BitTorrent have hidden behind  the DMCA, which has failed at it’s intent to protect artists. It could be argued that uTorrent and Megaupload have participated in business models enabling one of the largest transfers of wealth in history from individual creators to Silicon Valley companies and operatives.

Daniel Ek is reported to have a net personal wealth valued at $400 Million Dollars. Kim Dotcom’s fortune has been recently estimated to be $200 Million Dollars.

“The main reason music streaming services are winning over millions of consumers is the fact that they require no payment unless the user desires to pay.” – Music Streaming vs. Music Piracy | Medium.Com

Right now there is little functional difference to most musicians between music streaming and music piracy. This realization should not come as a surprise to musicians when they learn that the CEO of the largest and most used on demand streaming company was both the Co-Founder and CEO of uTorrent, “the world’s most popular BitTorrent client with more than 100 million downloads.”

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If Spotify wants musicians to take it seriously, perhaps it’s time for a CEO musicians can respect. The record industry might also want to reconsider who it chooses as friend and foe as well. More on that later…

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The Hypocrisy Of BitTorrent Knows No Bounds… Matt Mason Speaks…

BitTorrent’s Matt Mason let this one loose…

““We’re not interested in streaming for the sake of lining the pockets of a few people at major labels. We’re interested in helping artists make money from their work in the long term… I’m not trying to bash the people at the labels, but it does seem like the senior executives at the majors have said ‘we give up, let’s just make some money on the Spotify IPO, then go home and let the next generation sort it out’.”

You’re kidding right? We can’t make this up. As if BitTorrent has done anything other than destroy the lives of creators to have a self empowered right to make their own choices with their own work… So in your mind Matt, BitTorrent are the good guys and Spotify are the bad guys?

What percentage of music is Spotify distributing illegally? What percentage of music on Spotify are artist not getting paid on? Ok, now ask the same questions of BitTorrent.  Research finds that 99%+ of files distrbuted via BitTorrent are infringing (see the links below).

Wow, just wow.

And there’s this line from Matt’s interview with the Guardian UK:

“We’re a technology company, we’re really good at moving files. We’re not so great at being a label, a film studio or a book publisher.”

We know Matt because being a label, a film studio or a book publisher would mean you would actually pay the creators for the work you are distributing and investing in developing their careers through financial advances, marketing, promotion, pr, and other resources. Obviously things BitTorrent is loath to do for artists.

But let’s ask, how much money has BitTorrent invested into developing artists and helping them “make money from their work in the long term”… ah, that would be zero.

READ THE FULL POST AT MUSIC ALLY:
http://musically.com/2014/09/29/bittorrent-thom-yorke-spotify-u2/

RELATED:

Record Labels Invest $4.5 Billion Annually In Artists… Pirates, $0… Any Questions?

“Options, not rules”: BitTorrent Profits from Piracy By Serving Ads To UTorrent Client

We’re All Waiting, BitTorrent

Just a Word About Thom Yorke and Bit-Torrent…

Just a Word About Thom Yorke and Bit-Torrent…

We’ve been here before. We know how this story ends as it did previously for both NIN and Radiohead. We remember those experiments too and we remember what was said after that fact.

Let’s be clear:  Bit Torrent Bundles is taking advantage of an installed base of 170 million plus users that they obtained for one reason and one reason only–they have a product that they have perfected into the best tool for piracy in history.  And understand, this is not just some kid in a dorm room who came up with some software.  This is a commercial company that improves and perfects its product and has done so for 13 years.  There’s nothing spontaneous about this company that suddenly are shocked, shocked that there is piracy going on with their application.  Check out Andrew Keen’s interview with Bit Torrent founder Bram Cohen and Cohen’s unconvincing regurgitation of the Lessig excuses for stealing from artists.

Bit Torrent has been struggling for years to commercialize that installed base whether it’s through selling over 5 billion ads a month in the uTorrent browser or now by a supremely innovative business model–selling downloads.  Selling downloads was perfected by iTunes over 10 years ago and selling ads to profit from piracy is as old as Google Adsense.  So what’s innovative about Bit Torrent Bundles?

What’s innovative is that having stolen the audience from a vast number of creators, be they artists, film makers, authors, photographers, illustrators, free lancers and others, and from investors in creators, be they record companies, music publishers, book publishers and others, Bit Torrent now wants to sell the distribution channel it stole back to those who are solely responsible for creating it.

This is a form of blackmail, pure and simple.  This is why there are unfair business practice laws to protect the public from people like Bit Torrent.

If the artists participating in the Bit Torrent Bundles program are able to overlook Bit Torrent’s history, that is their decision.  If they can sleep at night knowing they are profiting from the massive theft of other peoples creations, then bully for them.  If they think it’s good logic to compromise themselves for the opportunity to sell to a mailing list of shoplifters, then we’re also looking forward to their solution for 2 plus 2 equals -5.  Please show the work.

And most importantly:  If these artists think that it’s a good idea to legitimize Bit Torrent without requiring the company to do something about the massive theft they support, then so be it.  We get it.

These type of “experiments” generally only work if the artist is someone who has had the benefit of more than a decade of marketing and promotion paid for by a multinational corporation spending millions and millions of dollars.  Which is why these artists are also the top tracks being stolen using the Bit Torrent application.  If there is logic to this, please let us know.  It just looks like the typical Big Tech shakedown.

Why?  How much money has Bit-Torrent invested in Radiohead’s career? Zero. But hey, they have distributed hundreds of millions of copies of the bands catalog to consumers without compensating the band a penny. Not one cent. Ev-er.  And now they have the brass to charge artists a distribution fee for Bit Torrent Bundles?  If Bit Torrent gave the artists the service for free, that would at least make some kind of sense.  But as usual, Big Tech just heaps insult on injury on insult.

When BitTorrent takes care of the 99.7% of infringing material they distribute, that will be cause for celebration.

RELATED:

BitTorrent, “Not Designed For Piracy”… Really? Seriously? 99% Infringing…

BitTorrent 99% Infringing, 100% Disinformation… now with Ads.

BitTorrent’s Dictator Problem. Belarus is Worse than Russia, Why Does Bittorrent Operate Development Center in Minsk?

BitTorrent 99% Infringing, 100% Disinformation… now with Ads.

We’ve reported before on BitTorrent’s claim that they are “not designed for piracy” despite multiple studies and research finding over 99% infringing content being distributed using it.

The latest comes to us from AdLand.tv who are offering commentary on BitTorrent’s recent move into outdoor advertising that first appeared in Gizmodo.

The opening of Gizmodo’s article reads thusly:

“Torrenting” is kind of a dirty word. It makes you think piracy, doesn’t it? Well it shouldn’t. Torrenting isn’t illegal. It’s not even morally ambiguous. It’s just a way to send data, and it’s awesome.

Yes. That’s right. Keep telling yourself that. Guns don’t kill people. People do. It’s not the syringe, it’s the heroin. It’s not the file sharing platform enabling copyright infringement; its the millions of users using the site to infringe.

Baa, baa, baa, Sheeple.

As usual the folks at AdLand have a wonderful way of exploring the ad campaign by BitTorrent.

“The internet should be regulated people-powered.”

What other industry do you know that has near zero regulation except Big Tech? We have Alcohol, Tobacco and Firearms (ATF) the Environmental Protection Agency, the Food And Drug Administration, and the Occupational Safety and Health Administration (OSHA) to name a few of the regulators. Big Tech doesn’t even police itself because if it did, it would be losing money by the truck load. This isn’t even up for debate.

People-powered, my ass. In the immortal words of our dear president, we didn’t build that. Someone else did. They built the internet, the websites, the software. The search engines. The email programs. Just as someone else created the content you’re helping yourself to for free. Don’t fall for this “people-powered” bullshit at all. The artists and musicians (you know– the people) do not make money off torrent sites from the ‘exposure.’ This has been reported on ad nauseam. The only people who have the power are the Big Tech companies getting rich off of content they don’t own.

READ THE FULL POST AT ADLAND.TV:
http://adland.tv/node/156095#sJh2zH6EcHXqaxFB.99

DMN : 7 Reasons Why Artists Should Skip a BitTorrent ‘Media Partnership’

Worth repeating here from Digital Music News by Helienne Lindvall.

Lately, BitTorrent, Inc. has made a concerted effort to appear “legit”, courting both artists and their managers.  It’s even managed to become a “tech partner” of the UK Music Managers Forum.  But is partnering with BitTorrent – and its uTorrent client – really a good idea for artists?

READ THE FULL POST HERE AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2013/20130529bittorrentjustsaynoearbud