Rightscorp Burns $4 For Every Dollar Pirates Pay in Fines

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
At this rate, you'd think these guys would be out of business by now. :eek:

Piracy monetization firm Rightscorp has just turned in another set of disappointing results for the third quarter of 2015. After losing $424K during the three months ended September 30, the company has recorded a net loss of $3.1m for 2015 thus far. That means that for every dollar it receives in fines, the company loses $4.
 
Sounds like a crappy business model, but if things keep going this way, they'll be profitable next year (based on the relatively small loss last quarter vs the YTD losses).
 
I don't know if it's their business model that sucks or if they are slow to adjust it to something that can be profitable. It would seem to me they are learning what cases to take and which ones are money-pits.
 
I don't know if it's their business model that sucks or if they are slow to adjust it to something that can be profitable. It would seem to me they are learning what cases to take and which ones are money-pits.

Perhaps sounds should have been in italics. The main thrust was that quarterly losses are down significantly, and that they'll probably be profitable in the near future.

That said, I suspect if people were to start using a VPN or torrent from a leased computer, they'd have a very tough time catching people...especially if the person connected through a VPN that doesn't store incoming IP addresses
 
It's about who funds them, not what they lose. The industry uses these pitbulls to keep the public at arms length with respect to the perception that they are the entertainment industry which has worked to great effect. So color me unsurprised at the fact that these guys bleed money because it doesn't matter.
 
"Sure we lose money on each transaction, but we'll make up for it with volume!"
 
So extorting money from 6 year olds, college kids and old ladies isn't profitable? Who would have thought?
 
So is this "lose money" in the same way that Apple, GM and other big companies "lose money" for tax purposes?
 
They raise the price of CDs / digital royalties for every million they lose.

No win situation.
 
People whine soon much about this music and movie stuff like it's something more than just lame entertainment. Whatever. And the profit from lawsuits isn't important because this is a deterrent expense. Duuuuuh!
 
It seems pretty foolish to start a business where your only "customer" is a demographic that exists primarily due to not having disposable income.
 
I doubt they are making any money at all, chances are they are counting accounts received as actual income.

Expect to see some news on them cooking their books to stay afloat in 2-3 yrs.
 
It seems pretty foolish to start a business where your only "customer" is a demographic that exists primarily due to not having disposable income.

Unfortunately, that's not true. I know plenty of people making 80-140k (in fairly low cost areas) that download their music and their movies. The college students of the early aughts are out of school, but they never lost the habit of free.
 
Back
Top