Kim Dotcom

It looks like the entertainment industry may have gotten its money’s worth after law enforcement officials shut down Kim Dotcom’s Megaupload last year. The Wall Street Journal reports that movie sales increased significantly after Megaupload went offline, according to new study conducted by Wellesley College assistant professor of economics Brett Danaher and Carnegie Mellon University professor Michael D. Smith. The two researchers say that “shutting down Megaupload and Megavideo caused some customers to shift from cyberlocker-based piracy to purchasing or renting through legal digital channels,” contradicting earlier studies that suggested shutting down the site did little to lessen online piracy. More →

Kim Dotcom has never been shy about tooting his own horn, and this week he boasted on his Twitter account that his new Mega file-sharing website now has more than 3 million users. It has also hosted more than 125 million files ever since coming online just a month ago. Dotcom said that Mega’s encryption remains “unbroken,” that “most” of its bugs had been fixed, and that the website will soon launch a mobile app and a sync client. The last year has been a long, strange trip for Dotcom, who has been engaged in a legal battle with law enforcement officials who shut down his original Megaupload file-sharing site in early 2012. Throughout the year, authorities also accused Dotcom of owning an Internet doomsday machine and of having the world’s most dangerous belly, among other questionable assertions.

What a long, strange trip it’s been for Kim Dotcom. Last year at this time, he was arrested at his New Zealand mansion and his Megaupload file-sharing website was shut down due to accusations that it was a hub for Internet piracy. Throughout the year, authorities accused Dotcom of owning an Internet doomsday machine and of having the world’s most dangerous belly, among other questionable assertions. While all this was going on, however, Dotcom was planning to make an epic comeback with a new file-sharing website, simply dubbed Mega, that he vowed would have ironclad legal protection. More →

Kim Dotcom’s new Mega file-sharing site hasn’t even launched yet, but it’s already proving as controversial as his previous ventures. New Zealand’s TVNZ reports that radio station company Mediaworks has yanked ads promoting Mega from its stations just days before the new site is scheduled to launch. Dotcom immediately blamed music industry pressure for Mediaworks’ decision and said on his Twitter account that “apparently some music labels complained to Mediaworks about our radio ads,” which allegedly resulted in the “booking of over 500 ad plays terminated.” Dotcom, who has long been in a legal spat with copyright holders in the entertainment industry, went on to say that “the music labels that are abusing their power, again.”

Kim Dotcom will not be denied. After facing a minor setback last week when the Gabonese government shut down its original domain name, Kim Dotcom’s new Mega website came back online this week and still looks primed for its grand launch on January 19th. Dotcom on Monday sent out a notice through Twitter that “New Zealand will be the home of our new website: http://Mega.co.nz,” which would be ”powered by legality and protected by the law.” Going to the website shows a giant red “MEGA” icon that promises to “change the world” on January 19th.