Tuesday, October 13, 2009

Extorsion is the new business model

A german parasite company called Digirights Solutions are specializing in hunting down and threatening alleged pirates on behalf of the entertainment mafia, demanding 450 euro for the victim to avoid a lawsuit. Whether or not this person is actually guilty is irrelevant. Approximately 25% of the victims pay up to avoid the devastating costs of a lawsuit. Much like most people would give up their wallet and watch to a crook on the street to avoid a beating or a bullet in the head.

The loot is split 80-20 between Digirights Solutions and the entertainment mafia, making it a very profitable "business" for both. In fact, Digirights Solutions claim it's 150 times more profitable than actually selling content online.

In other words, as far as this mafia business is endorsed and encouraged by corrupted governments in Europe and the US, there's really no reason for the entertainment industry to come up with new business models. The threats and bullying business model is by far the most profitable. And we all know ethics is not part of the equation.

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