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.
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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