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Australian Drug Mafia to Sell Pirated DVDs?

If you ask any Australian what the most annoying thing is about TV shows or movies, a common response is that it can take a long time for things popular in the US and UK to make it ‘down under’. Apparently, the Mafia has picked up on this, as they have started selling pirated movies and TV-shows on the streets, or have they?

When you get in any sort of reporting, you start to see the same sort of stories crop up. We’ve been writing for almost 3½ years, and even in that short time, and in as narrow a field as I keep an eye on, we see the same things crop up. In that way, it’s like fashion, except instead of cycles of 20-30 years, its often only 3-4. One such example comes courtesy of yesterday’s The Australian. Under a headline of “Organized Crime gets into Video Piracy” is a number of claims.

“DVD and other piracy can now be more profitable than drug trafficking,” AFACT’s director of operations Neil Gane told The Australian. “That’s why crime organizations are going into it.”

It might not sound familiar to some of you, but a similar claim was made some four years and 9500 miles away, in the UK. Back then, during a campaign called “piracy is a crime” they made similar allegations (see the top of this page, court. wayback machine), allegations that didn’t stand up to scrutiny back then, when we first encountered them.

Do these? Well, the article in question makes use of the infamous LEK study, and even the MPAA knows it’s inaccurate (pdf). So, it’s not exactly off to the best of starts. Unfortunately, that’s also the only start. Despite a trawl of the websites and press releases put out by the two organizations (the other being Foxtel), there is only one recent link (doc) between drugs and ‘piracy’ and that is the prosecution of ONE MAN just over a month ago, for cultivating cannabis, and what is described as ‘multiple copyright offenses’.

So, we’ve gone from one guy, with 3,300 movies+TV shows and growing some cannabis (total punishment, 7 month suspended sentence, and a 2 year good behavior order) to Organized Crime. Despite the utter failure of the similar campaign in the UK years earlier (where the only thing remaining of the campaign is the ‘You wouldn’t steal a…” advert) Australia seems determined to try and make it work.

However, there is a plus side, in that AFACT have established a market price it believes consumers feel to be the worth of a DVD. In all their estimations of yearly capacity, they give a ‘street value’ of roughly $5AUS, which is about $4.77 US (3 Euros, or £2.40). In this they differ from the campaign in the UK, where the value given was some 20 times greater. In this, while telling lies, they are also more truthful.

In the end, no ‘criminal gang’ will forego their drugs, weapons or other lucrative money-making operations for DVD piracy. The reasoning is as plain as it is simple. With drugs, or guns they have small, highly valuable goods that can’t be easily obtained elsewhere. As the world becomes increasingly connected, and peer-to-peer becomes simpler to use, more reliable, less time consuming AND more powerful, the potential returns on selling bootleg DVDs reduces, ask Tony. Ten years ago, people had dial-up, and hard drives were maybe big enough for 2-3 DVDs. Now you can buy terabyte hard drives, and even the TorrentFreak researcher, living in the middle of rural Georgia, 10 miles from the nearest shops, has an 8Mbit connection.

The reasons for comparisons become clear when you hear the comments of Foxtel’s head of Fraud, Mark Mulready (a ‘former police prosecutor and detective’), who told The Australian “Police should have all the same investigative tools to fight piracy they currently have for organised drug trafficking or money laundering,” so, as usual, it’s about not having to spend time and money on civil cases, but having the taxpayer foot the bill, and the ability to use law enforcement to patch their business model.

Rehashing failed campaigns is a sign that the industry has no new ideas, and is desperately trying to avoid dealing with the root of the problem , themselves and their greed. When even the police are so into ‘piracy’, that there are too many to prosecute, it’s time to stop sticking your head in the sand, and deal with the causes.

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  • http://www.eZee.se www.eZee.se

    The Mafia against the MAFIAA…

    LOL!

  • lowdirt

    great reporting as usual TF!

    keep it up

  • Anonymous

    The people also need to deal with this problem – hand out DVDs or CDs or other things on the street for free as civil disobedience.

  • Josh

    Broadband in Australia is VERY expensive and has very limited caps in terms of per-month GB limits. Buying pirated DVDs is actually a viable market in such an environment. I’m not suggesting their information is factual on this basis alone, simply that your 8Mbps uncapped pipe in America does NOT translate well into Australia.

  • http://neuron2neuron.blogspot.com Ben Jones

    thanks lowdirt (and thank you eZee)

  • Richard

    Shows even here we can’t escape from the RIAA =P

  • ballsdeep

    nice report ben :)

  • #YLS#

    A some more positive news considering the last week or so has been abit depressing for pirates around the world, espically for the UK.

    To be honest I hated in the UK when they claimed DVDs were sold to fund terrorists. It was the most insulting comment to be made!

    To be honest at the cost of £2.40 for a DVD, I’d probably be even less worried about downloading as long as it let me rip them into MP4.

  • @5 benny

    lol. eZee found that much too funny!

  • Killer Tree

    I would pay $5 for a GOOD DVD, but no way I’ll shell out $20-$40 for Hollywood’s recent contributions from the movie factories. Of course, I currently pay $0 because I don’t support terrorist organizations like the **AA. Actually, I would rather fund organized crime then the MAFIAA because at least they don’t take anyone to court =^P

  • Hmmm…

    Australia has a mafia?

  • brent3000

    after VIC banned underbelly that just sent the “pirate” business in AUS up dramatically lol…

    Theres no reason why they take so long… so why not… Randoms on the street can get a movie here faster that a million dollar company.,.. thats just buggered up if u ask me…

  • Razblow

    @11

    Yeah, and it’s run by kangaroos.

  • Aussie Mafia

    Good-on-ya Mate! We Aussies will tak any Joe Bloggs who crosses us on out to the wild Outback and introduce them to good ol’ crocky.

    Welcome to the new “South S-I-E-E-D-E!

    Aussie Mafia =P

  • http://www.eZee.se www.eZee.se

    Most welcome Ben

    @ benny, 11 & 13 :D

    I too wish organized crime humps these SOBs, but then again thats a confusing statement because the **AA are the most organized bunch of criminals the world has ever seen…

    I guess what i am trying to say is: I hope a lot of the RIAA and MPAA meet some very sweet people in a dark alley, and these people have a silencer attached to give these lowlifes something that’s long been overdue.

    But the thing that is most disturbing is… i just cant shake the image of Marlon Brando and Al Pacino in a damn Aussie accent!

    “My father made him an offer he couldn’t refuse…..”

  • RandomGuy

    If pirate DVDs is more profitable than drugs, I know where I’m going for my drugs :P

  • Bert.

    Great article! Well written and for the most part supported with evidence, it makes a good read.

    We need TF to defend P2P users and represent a view contra to what the MPAA etc. broadcast into a billion homes whenever they feel like it.

    Keep up the high quality of reporting and don’t get shutdown!

    A representative like this can be as important as the security of the technology we use and the politicians we vote for!

  • #YLS#

    @ 16 – Bert

    I doubt TorrentFreak could ever be such down for legitimate reasons…

    Wait what am i saying? The Domain has torrent in it, it must be linked to guns, drugs, prositutes and… I dunno people who slap donkeys or some other made up crime!

    :D

  • #YLS#

    @ 17 – myself

    Shut down*

    man i’m such a tard sometimes.

  • The_Sinister_Mastermind

    What Josh said is true but only to an extent. Indeed you can’t get the kind of internet plans found in the US & across Europe down here in Aus. But you can get some pretty fucking good ADSL2+ plans. C

    urrently I’m waiting on the exchange near my home to be upgraded before I can access ADSL2+, but what I’m on now serves my needs rather well. 40GB down a month, unlimited uploads, 512/128.

    Yes to those on 8Mbit connections and such this sounds shit slow, you know what, it is, but I’m at work all day and go out most weekends, so it doesn’t bother me. Because with what little time I do spend at home, hey my PC is getting me a new movie and several new albums every day. :)

    On the point of organised crime rings distributing pirated DVDs, HA! Honestly, it’s a few guys driving around in their ‘doof doof’ cars trying to sell to the workers in the industrial areas, aside from that it’s at flea markets, but it’s been like that for years, nothing new at all.

  • MPAA Hater

    I am sure they will sway lawmakers into more retarded laws. They will probably not even allow talk about torrents seeing as how things have been going recently. They need to adapt their policies, technologies, and pricing for the Consumer, not the other way around.

  • MPAA Hater

    Also, I beleive torrentfreak is hosted in the US by a company called SteadFast.net. They are based in Chicago, IL. Who knows what the US Gov or AA’s will do. The site could **accidently** go down ;)

  • freak

    Drugs are better than piracy, imo.

      ∧__∧
      リリ゚∀゚)  
      ( つ旦O そっし~♪&挑戦
      と_)_)

  • yawho

    i remember in the melbourne market picking out what pirated ps1 games to buy before the ps2 came out, had a nice stand set up all on display which mustve had over a 1000 games, i even seen a cop buying pirated game in uniform, but that was all before the free trade came into it

  • JT

    no biggie, mexican maffia´s been doing it for almost 2 years…

  • pink panther

    you can’t download drugs from bittorrent – who’d pay the mafia for DVDs when you can download for no cost?

  • i want mine “with” please!

    pink panther
    but that’s the + for MAFIA DVD’s.

    Even the RIAA prosecutors training video told us that you get your MAFIAA thing with “with” if you ask the MAFIA guy instead your local dvd store.

  • Anonymous

    @11 of course they do. its called organised crime or underground or similar

  • lol k

    Oh yeah I can see this happening..

    Yep.. the AK-47 includes 4 ammo clips and il even throw in a DVD of FINDING NEMO? Hows that sound? You like that? AK-47 and Finding nemo?

    Yeaaahhh.. barginz!

  • JImmy Dowapp

    Good for them! Bravo! Hey, gotta make a living right? Whatever works. Supply and demand LOL

    JT
    http://www.FireMe.To/udi

  • Anonymous

    @ 23

    ZOMG wtf!

  • Anonymous

    @ 22

    I can see it now:

    http://torrentfreak.com/closed

    ‘This site has been closed as a result of illegal discussion of the bittorrents. A criminal investigation continues into the activities and identities of the site’s users’

    BBC Headline News:

    The tactics were the same, but the targets were very different.

    Admins of bittorrent news site ‘Torrentfreak’ were arrested today and accused downloading articles about bittorrents onto their website.

    Investigators claim that users paid a monthly fee to access the site, where they read articles about bittorrents and were encouraged to post their opinions about the articles.

    In order to join the site, users had to prove that their comments were snarky enough to be posted on the site.

  • Man

    Here in India for home users unlimited downloads (no cap) 1mbps ADSL2 is around $60(US) 1mbps downstream and 128 upstream. No MPAA or RIAA bullshit. Downloads are on 24/7.

    Better speeds are only available for business users which is bullshit

  • Remi

    Here in Poland You have 512kbps for about $30(US) and it seems that we have one of the most expensive internet in Europe. I’ve been to Austria for some time, they have 2mbps for 20€ and 25 mbit for 60€, and what about Australian internet prices ? are they so high ?

  • rgghfugh

    gbgbg

  • Mark Simpson

    The Australian is owned by News Corp. News Corp also owns the major newspaper in Fiji, the “Fiji Times”.

    The Fiji Times has long carried ads for pirates… “4 movies for $3.00″, “8 in 1 dvd pack, only $12.00!”

    Oh the hypocrisy!

  • aussie

    The internet prices are fine
    in perth for 65 Aus you get adsl2+ with 24mbs down 20gbs limit download unlimited upload at 8mps

  • adith

    nice post
    chk out my blog
    http://flowtationaddvice.com

  • something funny

    want to hear something funny? i’ve dealt with foxtel engineers in the past . . . they once asked how could bypass macrovision on dvds. why? so they could use the dvds for broadcast . . .

    last time i saw one of those piracy warnings on a dvd, it said something about public viewing or broadcasting being illegal.

  • Phishybongwaters

    dumbest thing I’ve ever read.

    Maybe 15 years ago people were buying shit off the streets, but what kinda idiot does that now? Hell, you can walk into any burger king and get free wifi access to download til your hd is full.

    Paying for crap on the streets is not a big empire, and there’s not much money to be had, 5 bucks a pop? Better sling ALOT of cams to make a go with that.

  • Delta

    Mafia?

    Slight exaggeration…I’d say ‘street dropkicks’

  • Tilgare

    “American
    workers miss out on thousands of new jobs each year and billions of dollars in earnings, in
    addition to the cities and towns that lose millions of dollars in tax revenue , all due to piracy.”

    Uh, please MPAA, explain that one to me… such a straight forward statement and no proof or information…?

    “The 2007 study will report that number to be approximately 15 percent –or nearly a quarter of a billion dollars in stolen content annually by college students in the U.S. Although college students make up three percent of the population, they are responsible fora disproportionate amount of stolen movie products in this country.”

    LOL, hell yeah we do. We’re BROKE.

  • Anonymous

    I am not very good at website design, but I have attempted to create a pledge for people who are willing to struggle for a cause, so that there might be a chance that we could take action collectively.

    It is at http://www.28chan.org/pledge.php

    What do you people think?

  • MasterMan

    Great report, very interesting to read.

    Keep up the good work

  • sinner

    review and guide at

    http://techfuel.wordpress.com

  • Diji1

    I’m Aussie… my Exetel ADSL2+ plan is 8Mbps/845, 72Gb/mth between 12pm – 12am + 48 Gb/mth 12am – 12pm… then shaped to 64kbps

    So in total 120Gb/mth through Telstra network. I get through that before the month ends though (using rapidshare & DCC/fserves with BT) so I gotta limit it to keep my fast speeds (for AU). Recommended!!

    ATM Foxtel (AU one & only cable TV provider) is losing large amounts of customers due to bad economic climate… so expect more of this crap. As to the Mafia being in AU – you bet they are!

  • BTGuard - BitTorrent Anonymously

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