Pirates Slowly Killing MediaDefender
Written by Ernesto on June 03, 2008It has been a rough year for MediaDefender and their parent company ArtistDirect. Last September a database of internal emails leaked, and last week they received more bad press for DDoSsing Revision3. Unsurprisingly, MediaDefender’s revenue has dropped significantly as a result.
This is not the first time we have reported on MediaDefender’s poor financial situation, now it’s looking like the company has lost the last bit of goodwill they had left.
Surprisingly, however, MediaDefender – best known for spreading fake files on BitTorrent – does not blame itself for their losses, but the music labels. In their latest quarterly report the company explains the huge drop in revenue as follows:
“Revenues related to MediaDefender’s anti-piracy activities declined in 2007 as compared to 2006 and management anticipates a further decline in 2008. The largest source of this decline is due to reduced spending on the part of the major music labels due to a significant reduction in their sales and profitability.”
So, MediaDefender argues that the music labels are spending less money because their revenue is going down. This is a strange argument, if you consider that the music labels blame piracy for the decrease in sales. MediaDefender’s purpose is to decrease piracy, so either they are not doing their job very well, or there might be another explanation that the labels stopped hiring MediaDefender.
Could it be that the bad press that resulted from the security breach at MediaDefender has something to do with it? Some of the emails that leaked at the time revealed some unique insight into the inner workings of these labels and i’m sure they weren’t too happy about that.
In the quarterly report last year’s email leaks aren’t mentioned at all, even though it could very well be one of the major causes of the decreased revenue. 
By November 2007 MediaDefender had already lost a massive $825,000 due to the leaks, and more financial damage was to be expected.
Before the email leak, stock was around the $2.25 mark, but this has dropped to less than $0.50. Last week we learned that MediaDefender is not only going after trackers from BitTorrent search engines, but that they’re also targeting businesses like Revision3. This wont do their image any good either, and might bring the company down even further.
So, what will happen now? Revision3’s CEO Jim Louderback said on Twit that they wont pursue the company in court after all. Nevertheless, I’m quite convinced that the company has the ability to walk the plank to bankruptcy, all by itself.
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66 Responses
Boo-f**king-hoo! Sorry MD, but I’ll dance ( and possibly other things ) on your graves when your dead and gone! Good riddance, the quicker these parasitic scum are gone, the better.
music companys have screwed them to hahahaha thats gotta suck :-D
“Revenues related to MediaDefender’s anti-piracy activities declined in 2007 as compared to 2006 and management anticipates a further decline in 2008. The largest source of this decline is due to reduced spending on the part of the major music labels due to a significant reduction in their sales and profitability.”
I suspect they believe their own bullshit. What a load of crap.
J.
yh die u piece of shit
was it mediadefender that was killing sharezea? if so, theire probably obliged to release the grip and give sharezea back to the community
anyway: GOOD RIDDANCE! walk the planks you low worms of earth!!!
Oh I’m so sorry mediadefenrerer. We’re we too strong? :/
– yason
Rest in Pieces MD, I can’t wait to be rid of you!
Whether or not Mediadefenders near demise is the cause of the leaks or not, an Anti Piracy company breaking the law really does impact them though. Imagine trying to use a company such as Mediadefender as a witness. They think of themselves as above the law and show complete disregard to some of the most basic of laws. I hope these guys crash and burn.
I remember that shit spreading already on Napster. All the fake fucking mp3-files that had a 10 or 30 second beginning and then just pure headcase NOISE for three minutes. Sittin’ there on a 56k-modem for an hour, and then get that shit in the ear was NOT nice.
As exspected… the emails still have to be a secret, even though it’s a very well known one…
And now even the labels left them, well, I still don’t think that this may because the labels are “thinking different”, it’s probably just because most of the sh!t MD did lately… especially the leak and the DDoS attacks…
We won’t be missing you a lot (except, because you always made the news headlines), so just leave, and may you never return again, MD!
hahaha
Claps His Hands Bravo Good Going Pirates Give Them Taste Of There Own Medicine.
Ha Dickheads!
Check out their full quarterly report:
http://www.edgar-online.com/bin/cobrand/?doc=A-1095079-0001104659-08-034625&nav=1&src=Yahoo
(If you click on “FORM 10-Q”, a javascript window will open and you can read the entire report.)
(** All their financial reports are listed at http://finance.yahoo.com/q/sec?s=ARTD.OB **)
One interesting note on their 2008 vs.2007 revenue:
In the “Anti-piracy and file-sharing marketing services” category, their revenue in “Three Months Ended March 31″ was $2,890,000 in 2008 – down from $3,841,000 in 2007. (Browsing through their financial reports, it seemed that the $3,841K revenue they reported in 1Q 2007 was about their average over the past 3 years.)
Bottom line: Revenue from Mediadefender’s anti-piracy services has typically averaged about 33% higher than their curent (1Q-2008 ) revenue. Already deeply in debt, and facing the prospect of a big bill – or possibly even a lawsuit – from Revision3, they just keep getting closer and closer to bankruptcy.
I suspect that the real reason why ArtistDirect/Mediadefender is publicly predicting that the music industry will cut back on their anti-P2P purchases in the future is because their remaining clients have already told MD that they plan to quit after their contracts expire. In the 2007 annual report, AD/MD stated that 2 major (unidentified) clients had already elected to leave. (I bet Sony was one company that left, since the leaked emails showed that they was already dissatisfied with MD’s performance)
I echo the sentiments of poster #1, just waiting till they put up their gravestone so its final. Heh bet a lot of them are cursing they didnt sell their stock when they had the chance!
Go down in flames… and burn slowly MD, coz you are never coming back up to your former “glory” again, you know that, we know that… and you know that we know! :)
Cheers!
Jag
http://www.ezee.se/
Hey, Randy and Octavio……
No lube for you!
Now get out your squeegees and start washing my windshield. :P
good thinking Jim Louderback . it’s pointless to bring a company on brink of bankruptcy to court .
by announce to public is good enough
I think this is conclusive proof that planting fake files on bit torrent does not work.
Most torrent site easily weed out fakes.
I think the music industry is now spending its money on selling downloads rather than planting fakes.
Sad news really. There needs to be *some* resistance to file-sharing at least or what’s even the point in being a pirate anymore?
It’d be like being in a boxing ring on your own…
comment number 9 by Muff made me laugh so hard. that must have been so frustrating.
who else encountered MediaDefender stuff on the open networks?
All these leeches on Society must be eradicated. I suspect bankruptcy is not far off for them, which is what they want for all file sharers. Personally my whole life is close to it so it don’t bother me.
But even in the file sharing community most are “leechers” who take and give little or nothing back. I don’t blame those with low bandwidth or those paying to upload also.
The extent of greed and selfishness is widespread, and is an unhealthy ingrained trait which is doomed to fail. There’s more happiness in giving than receiving, said the greatest man who ever lived.
Always preview your files when possible. I never deal in those encased in zipped formats, especially large ones. I may be missing out, but its happened to me too many times.
With BT, turn on the “prioritize first and last bits” option to enable video viewing
my rectum itches
This is such a ironic piece of news. Well there’s this old saying. If you can’t beat then, join them.
And so the devastation begins..
http://rycon.baywords.com
good riddance.
I think the common problem here is that the majority (myself being no exception) feel why pay for it if you can get it free? I mean lets keep it real.
JCW
http://www.FIreMe.To/Udi
Because artists get most of their money from live shows and maybe a nickel from CD sales?
I just found out who the Revision3 guys are (tinkering with miro). Keep the good work!
@6: X-D
Why isn’t Revision3’s CEO sueing? I bet the FBI do nothing about MediaDefenders illegal activities. We need to keep this topic alive ’cause I think they just want people to turn a blind eye toward what they did.
“Pirates Slowly Killing MediaDefender” ???
its not the pirates thats killing MD its MD’s incompetence thats killing MD.
“Revision3’s CEO Jim Louderback said on Twit that they wont pursue the company in court after all.”
WTF Are you doing!? You had the chance to instantly KILL the fucking “company”
AD has been dead for years…Mediadefender only prolonged the agony.
“. . .this decline is due to reduced spending on the part of the major music labels due to a significant reduction in their sales and profitability.”
Yes! Houraaaaaaay!
The parasites are dying! The mediadefender and mediaSentry parasites of the parasites are dying as well as a result!
Yahooooooooooooo!
Bye bye scumbags
“The largest source of this decline is due to reduced spending on the part of the major music labels due to a significant reduction in their sales and profitability.”
Yep…Right…a reduction in sales. Well, I certainly don’t see MD doing their job by ‘Defending the Media’, too bad they aren’t able to defend the media from companies such as themselves.
You just reap what you sow.
Get a life scum MD.
I lament the loss these wonderful people were contributing to Prince’s callgirl fund.
Nah, I don’t give a shit.
Revision3 should have pursued them in court. Anything to put another brick in the wall.
I feel really sorry for their shareholders. Actually, wait… no I don’t!!! :)
(If you sell your soul to the devil, don’t be surprised when he comes-a-knocking.)
LOVE AND EQUALITY FOR ALL!
Yea, that is good that they are soon going away!
How odd! Blaming their best (only?) customer for their own profit woes? Doesn’t sound like a relationship builder strategy. RIAA members blame piracy, and hire MD, which doesn’t stop piracy and becomes a byword for incompetence and ineffectiveness, and then MD blames RIAA members for not spending enough for their services. Will they eat each other?
Let them rot slowly in their own misery bloody snufflers.
great news but mediadefender is history but pirates won’t have a chance winning over RIAA or MPAA
RANDY SAAF More Info about RANDY SAAF Record Created: 03/2002
136 BRONWOOD AVE Satellite Photo & Map Google Randy Saaf
LOS ANGELES, CA 90049 (310) 440-0672 White Pages Business Listings
Click here for complete public record report on RANDY SAAF
@45 john
Uh yes we do.. where the hell did you get that idea? The RIAA and MPAA will bow to our might like the rest.
or maybe, zabbasearch FTW
RANDY R SAAF Born 1976 More Info about RANDY R SAAF Record Created: Unknown
11718 GOSHEN AVE Satellite Photo & Map Google Randy R Saaf
LOS ANGELES, CA 90049
It’s the beginning of the end for Media Defender that is. It’s about time people like me and the rest of us have been trying to take these guys down for ages trying to sort out all bad files from the good and tagging them. The good that comes out of these guys closing their doors and shutting down their network of BS is there will be less traffic on the P2P networks and also most of these bogus file from them will be gone after a wile. I was trying to get a team together last year to start a site that warns tracker moderators and administrators of these files and to get them off the tracker, but nothing ever goes my way.
Later,
Dragon
I wish upon MD a long, slow, excrutiatingly painful death. Happy bankruptcy, a-holes.
This is an example of our difference while their drive is the dollar our drive is something much different a way of life and a veiw on how information should be shared in all its forums. So while they are limited by their dollar figures we are only limited by our passion. (and the ability to watch/listen to something before we pay their over priced prices and decided for our self if it is really worth it)
“but pirates won’t have a chance winning over RIAA or MPAA”
Pirates? What pirates?
Why doesn’t everyone just buy the stock and take over the company?
Going the way of Ted Kennedy…
Although Mediadefender\’s anti-Piracy business is drastically declining, there are more reasons for this, other than the email leak alone. As the movie and music industries gradually come to realize that \”interdiction\” simply does not work, they will start to reconsider their current pattern of spending huge sums of money, in futility, trying to stop or reduce the inevitability of filesharing.
MediaDefender knows this, and that\’s why they are trying to migrate their business toward spamming P2P networks. Because their current business-model practice of planting fake files, DoS attacking, and hogging bandwidth os suspected pirates is becoming less lucrative. And no doubt because their illegal actions to sabotage P2P are receiving increasing publicity. (Like any assassin, vandal, or terrorist, they work best under the cloak of darkness)
these assholes deserve it for misusing internet for spreading fake torrents, which is equivalent to SPAM for e-mail.
yellow journalism
While not on the video or music side of things, there are new anti-piracy technologies making their way to content producers for PC gaming and software. One particular licensing vendor, Uniloc, is tying activation to the physical machine running the content. But rather than a pure anti-piracy take, the message they’re pushing is for content producers to partner with pirates – interesting. Check out this write-up on them – http://www.eweek.com/c/a/Application-Development/Using-Licensing-Strategies-to-Deal-with-Piracy/
One down, many more to go!
Not surprising though, that MD is
getting into the spam biz. One
comment on the original Revision3
story on p2pnet.net suggested that
was the case.
Quote:
” was it mediadefender that was killing sharezea? if so, theire probably obliged to release the grip and give sharezea back to the community
anyway: GOOD RIDDANCE! walk the planks you low worms of earth!!!”
No.. the company behind that scam was Discordia Ltd. But the big 4 are going after the clients now as they think that’s the easier option.. Look out any P2P client who hasn’t registered their Trademark name.
btw, people in the know have all the MD IPs in their filter (if they are able to… they can in Shareaza)
Greets from the RAZA community :)
Constant Media Defender blocks on my IPfilters gets kind of annoying after awhile. These guys need to hurry up and die.
oh noez think of all the jobs lost for MD :(
Can we realy ruin peoples jobs like this and feel good about it?
.::HELL YES::.
It appears that mediadefender website is down and can not be reached. I was curious yesterday and tried to access the website but there was no response. Tried to ping the site and no response.
I wonder what is going on there?.
With all the pub Revision3 is getting.
It may help Martin Sargent get him a new job.
HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA…
I can’t wait for the day all of their illegal activities catch up with them.
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