Why Megaupload was shut down

One of the big questions about why the filesharing site Megaupload was shut down was “why that site and why now?”

There are other similar sites which so far have not felt Big Content’s iron shod jackboot on their throast. Megaupload has been around for a while and fairly public, so if it was such a threat to the industry why was it not killed off sooner?

It has not taken long for a really good conspiracy theory to take hold. It turns out in December Digital Music News reported that the creators of #Megaupload were about to unroll something that would scare the beejesus out of the music industry.

MegaBox was going to be an alternative music store that was entirely cloud-based and offered artists a better money-making opportunity than they would get with any record label.

MegaUpload founder Kim ‘Dotcom’ Schmitz told DMN that the site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings.

The idea was that MegaUpload would pay artists even if the content was downloaded for free. Schmitz told DMN that the business model had been tested with a million users and it worked.

This might explain why MegaUpload had some support from big name artists when it went under.

If this conspiracy theory is true, then the arrests and shuttering of MegaUpload were just the attempt from Big Content to stop an alternative business model which cut them from the picture. And the fact that they used the tax payer funded police and FBI to “make it all criminal” should be a wake up call.