Music and film industries in the United States could lose billions of dollars of revenues if they cannot prevent internet websites from offering their copyrighted content for free across the world.
An online entrepreneur and former internet hacker, 38-year-old German-born Kim Dotcom, born Kim Schmitz, is aiming to relaunch a new version of his Megaupload site before the end of this year.
The previous site was closed down by US prosecutors in January. Mr Dotcom is currently resisting pressure from the US authorities to have him extradited from New Zealand on the grounds that he has already facilitated copyright theft via his website on a massive scale, so far costing film and music makers about US$500 million (Dh1.8 billion) in lost revenues.
But the new version of the controversial website, which goes under the working title of "Megabox", is to give 90 per cent of the revenue it makes from advertisers on its site to artists. In the process, Mr Dotcom will effectively be cutting out what he refers to as "middlemen", the companies who own the copyright to much of the content that will be freely available over the internet. He is understood to be planning to locate the computers running the new website outside America to avoid their being shut down by authorities.
But the threat posed by Mr Dotcom's expected new service is only the tip of a huge iceberg that threatens to wreck the entertainment industry's traditional business model. For years, many in the information technology (IT) industry have predicted that it will eventually be impossible for the film and music industries to protect their copyright globally in the way they wish.
National jurisdictions increasingly see themselves independent of US interference, as the problems the American authorities are experiencing trying to extradite Mr Dotcom from New Zealand show. Under US legislation, breaching copyright via the internet can carry as heavy a prison sentence as manslaughter.
However, many other countries do not share this draconian view, and are reluctant to prosecute the organisers of free download websites or their users. Attempts to shut down other illicit download sites outside the US, such as the Swedish website The Pirate Bay, have also failed.
The Pirate Bay is reported to be switching all its data management to remote computing centres scattered around the world, a technology referred to as "the cloud". The website's organisers believe that this simple manoeuvre will protect them from police raids aimed at shutting down their website.
The ease with which such websites are now appearing to flout US copyright laws raises the question of whether the music and film industries should consider adopting new business models that have more in common with the "free" philosophy of websites such as The Pirate Bay and Megaupload.
"The US really lost its stature as a worldwide enforcement agency. It doesn't have the clout it once had and many of the practices surrounding media, movies or music, haven't been working that well," said Rob Enderle, the principal analyst at the Enderle Group. "It is probably time for both industries to start thinking more creatively."
The major record labels and Hollywood film studios have been slow to adapt to the advertising-driven business models powering internet services such as Google. By relying purely on the sales revenues of music albums and films, they are in danger of failing to appeal to a younger generation of consumers who are used to watching and listening to online content for free.
But US entertainment does have some strong allies in the IT industry. These include the world's largest company, Apple. The US computing giant's internet-based iTunes service effectively locks its users into a legitimate download service where they must pay for the copyright-protected content.
However, the growing popularity of less legitimate music and film download sites may eventually force Apple to change its business model to one which is more cost-effective for users. This could mean offering a subscription service where users pay a flat fee to download all the content they want for a limited period, or even a legitimate advertising-supported model where consumers receive content for free but are subjected to paid-for advertising on the site, which is used to pay for copyright.
"Apple has a lock-in service and it is so integrated that it is difficult to get around on Apple products," said Mr Enderle. "However, people like to have a value product free. Subscription services are, therefore, increasingly popular and are putting iTunes under some pressure to evolve."
With even Apple, a company well-known for trying to control user behaviour, in danger of moving away from the entertainment industry's traditional business model, the US music and movie businesses' attempts to police the globe could start to look increasingly far-fetched.
Ever since the digitalisation of music and film, there has been a slow but inexorable consumer shift away from physically retailed products such as CDs and DVDs towards internet-based content. Perhaps it is, therefore, time the entertainment industry updated its model accordingly.
business@thenational.ae
UAE currency: the story behind the money in your pockets
Top 5 concerns globally:
1. Unemployment
2. Spread of infectious diseases
3. Fiscal crises
4. Cyber attacks
5. Profound social instability
Top 5 concerns in the Mena region
1. Energy price shock
2. Fiscal crises
3. Spread of infectious diseases
4. Unmanageable inflation
5. Cyber attacks
Source: World Economic Foundation
'Cheb%20Khaled'
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About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Day 1, Dubai Test: At a glance
Moment of the day Sadeera Samarawickrama set pulses racing with his strokeplay on his introduction to Test cricket. It reached a feverish peak when he stepped down the wicket and launched Yasir Shah, who many regard as the world’s leading spinner, back over his head for six. No matter that he was out soon after: it felt as though the future had arrived.
Stat of the day - 5 The last time Sri Lanka played a Test in Dubai – they won here in 2013 – they had four players in their XI who were known as wicketkeepers. This time they have gone one better. Each of Dinesh Chandimal, Kaushal Silva, Samarawickrama, Kusal Mendis, and Niroshan Dickwella – the nominated gloveman here – can keep wicket.
The verdict Sri Lanka want to make history by becoming the first team to beat Pakistan in a full Test series in the UAE. They could not have made a better start, first by winning the toss, then by scoring freely on an easy-paced pitch. The fact Yasir Shah found some turn on Day 1, too, will have interested their own spin bowlers.
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
The specs: 2019 Aston Martin DBS Superleggera
Price, base: Dh1.2 million
Engine: 5.2-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 725hp @ 6,500pm
Torque: 900Nm @ 1,800rpm
Fuel economy, combined: 12.3L / 100km (estimate)
MATCH INFO
Europa League semi-final, second leg
Atletico Madrid (1) v Arsenal (1)
Where: Wanda Metropolitano
When: Thursday, May 3
Live: On BeIN Sports HD
The Freedom Artist
By Ben Okri (Head of Zeus)
COMPANY%20PROFILE%20
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Dengue%20fever%20symptoms
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Dubai Rugby Sevens, December 5 -7
World Sevens Series Pools
A – Fiji, France, Argentina, Japan
B – United States, Australia, Scotland, Ireland
C – New Zealand, Samoa, Canada, Wales
D – South Africa, England, Spain, Kenya
Youth YouTuber Programme
The programme will be presented over two weeks and will cover the following topics:
- Learning, scripting, storytelling and basic shots
- Master on-camera presence and advanced script writing
- Beating the algorithm and reaching your core audience
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
Tomb%20Raider%20I%E2%80%93III%20Remastered
%3Cp%3EDeveloper%3A%20Aspyr%0D%3Cbr%3EPublisher%3A%20Aspyr%0D%3Cbr%3EConsole%3A%20Nintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20series%20X%2FS%0D%3Cbr%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Killing of Qassem Suleimani
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Manchester United v Club America
When: Thursday, 9pm Arizona time (Friday UAE, 8am)
The%20specs
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About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Envi%20Lodges%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3ESeptember%202021%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Noelle%20Homsy%20and%20Chris%20Nader%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Hospitality%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2012%20to%2015%0D%3Cbr%3E%3Cstrong%3EStage%20of%20investment%3A%20%3C%2Fstrong%3ESeries%20A%3C%2Fp%3E%0A
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
FROM%20THE%20ASHES
%3Cp%3EDirector%3A%20Khalid%20Fahad%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Shaima%20Al%20Tayeb%2C%20Wafa%20Muhamad%2C%20Hamss%20Bandar%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A