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MegaUpload Shut Down Because of Megabox Jukebox Service?

By - Source: Techcrunch | B 36 comments

The downfall of MegaUpload is surrounded by yet another conspiracy theory.

One rumor is now suggesting that authorities had to strike because of possible pressure from the music industry as the service was about to launch a music service called MegaBox that could have enabled artists to give away their music for free and get paid by MegaUpload via secondary revenue that may have been generated by tools such as advertising. Given the size of MegaUpload, at the time of its shutdown the 13th largest website, hosted on more than a thousand servers and more than 1 billion visitors every month, MegaUpload could have been a serious threat in such a venture for the music industry. Keep in mind, this is a rumor, not a confirmed fact.

Even though, the speculation that the music industry was able to convince the FBI to shut down MegaUpload just in time before there may have been an inconvenient iTunes competitor is a spicy exercise. Imagine a service that attracts 50 million users a day and gives away music free of charge, while keeping artists happy. Suddenly you don't need music publishers anymore. Has there been a shady operation in the background? We don't know and I will leave that up to you to decide.

Of course, as it stands, MegaUpload and its sparkling and money-flaunting founder Kim Dotcom (born Kim Schmitz) are accused of mass piracy and there is a good chance that Dotcom won't get away with a slap on his hands as he did when he was convicted of insider trading and embezzlement in 2002 and 2003. Dotcom received a probationary sentence in both cases.

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Top Comments
  • 27 Hide
    anonymous32111 , January 24, 2012 11:45 PM
    War on drugs & piracy - never-ending waste of our tax dollars.
  • 22 Hide
    dillyflump , January 25, 2012 12:11 AM
    bustaprI can see both the good and the bad in this, but its mostly bad. Basically the ones that benefit from this are consumers and current artists. But future musicians would have a very hard time getting noticed because of this. for new artists, their success depends largely on being signed.This service would put off alot of people from buying music and publishers will fall. And there will be noone to sign and invest in new bands. Therefore these bands will have to get by on word of mouth alone and gigs. And eventually retire before doing anything big. And then the music industry would be doomed.Im glad this Megabox was never final, but sadly I think its innevitable for another similar service to appear.


    I think you'll find your lines crossed here. Most upcoming artists with anything of note to offer get over looked by the music industry in favor of an ever growing popularity to sign mediocre talent which they can manipulate using auto tune and then continually feed the garbage out to gullible tone deaf people for maximum profit.
  • 18 Hide
    xerroz , January 25, 2012 12:44 AM
    alidani heard that they were also planning to sell music and given 90% of the money to artists.

    That's 85% more what the record labels currently give to the artists. As always the music industry screws the people and the artists
Other Comments
    Display all 36 comments.
  • 27 Hide
    anonymous32111 , January 24, 2012 11:45 PM
    War on drugs & piracy - never-ending waste of our tax dollars.
  • 10 Hide
    AznCracker , January 24, 2012 11:58 PM
    wait, isnt that the guy that has the highest score on COD MW3?
  • 22 Hide
    dillyflump , January 25, 2012 12:11 AM
    bustaprI can see both the good and the bad in this, but its mostly bad. Basically the ones that benefit from this are consumers and current artists. But future musicians would have a very hard time getting noticed because of this. for new artists, their success depends largely on being signed.This service would put off alot of people from buying music and publishers will fall. And there will be noone to sign and invest in new bands. Therefore these bands will have to get by on word of mouth alone and gigs. And eventually retire before doing anything big. And then the music industry would be doomed.Im glad this Megabox was never final, but sadly I think its innevitable for another similar service to appear.


    I think you'll find your lines crossed here. Most upcoming artists with anything of note to offer get over looked by the music industry in favor of an ever growing popularity to sign mediocre talent which they can manipulate using auto tune and then continually feed the garbage out to gullible tone deaf people for maximum profit.
  • 14 Hide
    alidan , January 25, 2012 12:13 AM
    i heard that they were also planning to sell music and given 90% of the money to artists.
  • 13 Hide
    alidan , January 25, 2012 12:20 AM
    bustaprI can see both the good and the bad in this, but its mostly bad. Basically the ones that benefit from this are consumers and current artists. But future musicians would have a very hard time getting noticed because of this. for new artists, their success depends largely on being signed.This service would put off alot of people from buying music and publishers will fall. And there will be noone to sign and invest in new bands. Therefore these bands will have to get by on word of mouth alone and gigs. And eventually retire before doing anything big. And then the music industry would be doomed.Im glad this Megabox was never final, but sadly I think its innevitable for another similar service to appear.


    and un proven band getting signed is just giving them a debt, and letting them have VERY little leverage.

    the best thing a band can do is get a studio recording for their best song, and youtube it, get adds off it and put it up on a distribution platform like itunes, and try to get the word out.

    if you can plan your own tours, you can make even more money, and wont be screwed by record companies.

    most people wont even break even on their debt with the record companies till their 3rd cd if they are lucky.
  • 2 Hide
    Anonymous , January 25, 2012 12:22 AM
    I dont know. what else I can say about it. love megaupload and hate it. I m a megaupload user and I m also knowing it is gonna to hurt the music. and movie and the software in the futurebut I just can't offer too much things I want. . who else will go into bestbuy straightto the CD section or the movie section after knowing megaupload.
    RIP. megaupload, fileserve. filesonic.
  • 2 Hide
    Anonymous , January 25, 2012 12:39 AM
    Sucks they had some decent tv programs (with commercials) on mega upload. Like the TV people, don't get enough money???
  • 18 Hide
    xerroz , January 25, 2012 12:44 AM
    alidani heard that they were also planning to sell music and given 90% of the money to artists.

    That's 85% more what the record labels currently give to the artists. As always the music industry screws the people and the artists
  • 13 Hide
    jjtober1 , January 25, 2012 1:59 AM
    This IP/copyright nonsense is getting way out of control. No law maker has the consumer's best interest in mind, it's all about the big companies with all the lobbyists. I want people to get paid for their work, but we need some compromise. I just don't think you can treat digital content the same as a regular product, it just isn't.
  • 3 Hide
    groveborn , January 25, 2012 2:48 AM
    I am amazed at how people still use traditional services such as RIAA. Why bother, when you can go straight to the distributors? Same with movies. Why go through a studio, if you've already got the capitol to make the movie, just sell online. Perhaps it'd be good if there were an easy way to get it to theaters too...

    I was contemplating the trick of getting an Ebook on to Nook and Kindle just yesterday. Not the devices, I mean the service. Why sell your rights to some company who only puts them in the same distribution as you would? It's not like you need to print an actual book anymore. In the same way, you no longer need to cut a CD. Just record using your high end computer gadgets. Either distribute via YouTube, or some other ad supported service. You'll end up with the same revenue, but keep all your rights.
  • 3 Hide
    kinggraves , January 25, 2012 3:08 AM
    bustaprI can see both the good and the bad in this, but its mostly bad. Basically the ones that benefit from this are consumers and current artists. But future musicians would have a very hard time getting noticed because of this. for new artists, their success depends largely on being signed.This service would put off alot of people from buying music and publishers will fall. And there will be noone to sign and invest in new bands. Therefore these bands will have to get by on word of mouth alone and gigs. And eventually retire before doing anything big. And then the music industry would be doomed.Im glad this Megabox was never final, but sadly I think its innevitable for another similar service to appear.


    Artists would get by on popularity and gigs, actual talent and effort instead of hand picking acts based on their image and synthesizing them some talent? Sounds like the best thing that could ever happen to consumers.

    Kim Dotcom's really not that great of a guy either though, kind of guilty of money crimes in the past and would probably have taken a lot of people's money. He has a point, this is just as much about the war he's had with the industry as it is any crimes he's committed. I mean, there's plenty of criminals around the world. Plenty of large counterfeiting rings in China, actual ripping off physical products and selling bootlegs. Or they could have went in to grab one of the many drug cartel kingpins in South/Central America. Or perhaps one of the multiple child prostitution rings around the world and even in the US. No? Our biggest priority is a copyright infringer?

    Odds are he'll get 10x the sentence most child rapists/murderers do.
  • 1 Hide
    psychotek71 , January 25, 2012 5:54 AM
    i want to know why swizz beat's isn't in jail ..................
  • -3 Hide
    virtualban , January 25, 2012 6:57 AM
    jjtober1This IP/copyright nonsense is getting way out of control. No law maker has the consumer's best interest in mind, it's all about the big companies with all the lobbyists. I want people to get paid for their work, but we need some compromise. I just don't think you can treat digital content the same as a regular product, it just isn't.

    Even in worst case scenario with the cost of piracy being as they say (jobs, quality etc. something for the common people that is, because we all know they billionaires are selfless and don't think of their own profit and their third pool or second helicopter) the value I think is in the enjoyment of freedom to use the free internet as it was meant to be, freely.

    Can you put a price and value on peace of mind?
  • 3 Hide
    virtualban , January 25, 2012 7:06 AM
    p.s. wouldn't it be great if instead of putting effort into controlling the way users chose to use the copyrighted material, they put effort into providing users with the best experience and reliability possible compared to the price?
    Like Steam vs. Sony's rootkits vs. torrenting the unpatched and potentially trojan-ed version?
  • 1 Hide
    freggo , January 25, 2012 8:32 AM
    The RIAA may in the long run kill itself.
    Technology has come to the point where even a garage band with little financial backing can 'produce' top quality sound; never mind the fact that prob 99.9% of pirated music is MP3 format anyway, something that is not even remotely CD quality; and CD quality is the low end of music production these days.
    bottom line, the 'need' for an expensive studio and for a record producer is vanishing and the more acts that find out about it the better. Let's give them a way to self publish; and make a living doing so and before you know it the RIAA can call it a day.
  • -3 Hide
    NightLight , January 25, 2012 8:53 AM
    smells like apple had a part in this too...
  • 3 Hide
    southernshark , January 25, 2012 11:20 AM
    If he had been skinny they never would have charged him.
  • 10 Hide
    digitalzom-b , January 25, 2012 11:55 AM
    mobrocketThanks FBI for protecting me from this evil company....Yet Bank of America still operating... interesting...


    Pay the right people and you get whatever you want. U.S. Capitalism.
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