Drastic changes for filehosters

openload.co

In the next few years we will experience a revolution in the Internet. I am very convinced of that. Not in the sense of the whole Internet, but in the file hosting industry. Articles 13, 17, 11, Adblocker and advertising companies force filehosters to make massive changes. You guys have to understand the whole thing with articles 13, 17 and 11 all changed again. Adblock numbers have increased rapidly because even the stupidest users use Adblockers today. Advertising companies have pushed the CPM so hard that PPD (Pay Per Download) is no longer profitable today. Only PPS (Pay Per Sale) is profitable. Not only that, the advertising companies are forced today by some governments that they require personal data. There has never been such pressure before. Here for example you can read more. As if this wasn’t enough, the most used browser called Google Chrome has now brought an update that even blocks most pop-ups and ads. That was another slap in the face for all filehosters who actually need income to finance their servers.

We have to admit, we don’t live in golden times anymore where we could earn more than 100$ as webmaster for 20k impressions a day. Today it is for 20k impressions from the same countries with 100 times less CPM only maybe 10$. That is 90% less than 8 – 10 years ago in the file sharing scene. The times when streamhosters like Streamcloud, Duckload, Archiv.to, Filebase, Freeload and many other providers could earn a golden nose is no longer possible today. Also the Movshare group like Nowvideo, Videoweed or the group with Fileserve could enrich itself. Filehoster services such as Uploaded, Share-Online and Rapidgator can actually only keep themselves in the stable level through premium revenue. Even these sites would not be able to achieve anything without the revenue. At the moment there are 4 factors that put extreme strain on filehosters. Uploaded is also massively under pressure and will no longer be able to withstand this. Even a secure place like Switzerland is no longer as secure as it used to be.

A court decision for Rapidshare is still awaited

What filehosters are putting under extreme pressure at the moment:

  • Articles 13, 17, 11 put the file hosters under extreme pressure. This new law has caused extreme upheaval in some countries. Countries like Switzerland are also affected. There, for example, is Uploaded.
  • Adblockers have increased dramatically and the CPM are no longer profitable for filehosters. Bandwidth is still too expensive in Europe even if server prices have become cheaper over the last 10 years. Only PPS is profitable and no longer PPD.
  • Advertising companies like PropellerAds, PopAds that were once safe started using KYC. (Know Your Customer). Now it is mandatory to collect data and personal data from website operators because certain governments require it due to the high pressure. And no filehoster wants to give away data even if the site is on a legal level. Megaupload was also legal and Kim Schmitz was still fucked in the ass.
  • All over the world 80% Google Chrome is used on PCs and this browser will bring a big anti-advertisement update this summer.

Also Rapidshare had his company in Switzerland like Uploaded. Even though Switzerland may be a safe place because of the lax Internet laws, it could be dangerous for uploaded.

Rewards at Openload

On Wjunction some topics are hotly discussed as to why payments are no longer so regular. Many uploaders and well-known uploaders complain about the current situation and some even fear about its existence, because otherwise they could not earn anything more. Wjunction is still a webmaster forum for file sharing services. There are still many uploaders and official threads for filehosters. But also in this forum the activity has drastically decreased if you compare the numbers of the last 8 years. There are always new filehosters that open new topics on Wjunction but close later again because they are simply mistaken in this industry. Today there is only a small amount of successful filehosters left. Exactly because of the reasons that were listed above. It is said again and again that Openload delivers the payouts more and more late. Uploaded delays the payouts also massively and also in other filehoster topics rumors circulate again and again that payouts are delayed. Are some filehosters in a bottleneck? Some uploaders from the scene do not want to realize what is happening or do not understand the current situation. However, it is obvious what is happening here. The internet is changing again due to laws and the technology you have to adapt to.

We are curious how big providers like Rapidvideo, Openload, Vidoza will react and what the next steps will be. Here you can discuss what you think about the current situation. It is also very obvious that currently the Warez Scene is slightly inactive. Since the boom of Netflix and Spotify there are sites that are simply too unattractive for the world. Maybe it’s just in today’s digitalization? Because people are too lazy? I will keep you up to date on everything here on my blog.

Geoblocking because of Article 13?

Click on the picture to see the video

The first stage or the first consents of Article 13 have been approved by the European Union. This will stir up the content industry. However, the Content Mafia can cheer and welcome this decision. After years of debate and negotiations, politicians have passed sweeping changes following a final vote in the European Parliament. The changes have proved controversial, with critics being opposed to two specific parts of the law: Article 11 and Article 13. They form part of the wider regulations which were passed. The European Union Directive on Copyright in the Digital Single Market, to use its full name, requires the likes of YouTube, Facebook and Twitter to take more responsibility for copyrighted material being shared illegally on their platforms. It’s become known by the most controversial segment, Article 13, which critics claim will have a detrimental impact on creators online. YouTube, and YouTubers, have become the most vocal opponents of the proposal. But despite Article 13 and the Directive on Copyright being passed by EU regulators, it will now have to be implemented by the individual countries within the Union. To help clear things up, here’s WIRED’s guide to the EU Directive on Copyright.

What does this mean for filehosters or site operators with sensitive content?

Switzerland

There will actually only be two options, maybe a third one which would be very unlikely.

The first option would be to completely remove the server locations from the European Union, where Article 13 laws do not apply. The best server location with good connectivity would be Switzerland. Because Switzerland will not accept Article 13 at the moment.

As a non-EU country, the new EU copyright law, once in force, will not apply to Switzerland – theoretically. After all, it can hardly be assumed that large international companies will develop the upload filters required by the EU but not apply them to Switzerland. Rather, it can be assumed that Switzerland will be treated like the other EU countries.

The second option would be that website operators would simply add geoblocking to their site and countries where Article 13 came into force would be filtered. This would also be one of the ways to protect yourself.  The development is dangerous for “European innovation” and start-ups. And an incentive will be created for non-European sites to simply block all EU users by geoblocking.

The third option that I think is very unlikely is that website operators would develop an upload filter. Especially for small sites this would be impossible because the effort and programming is too expensive. It is not technically possible, and it would mean the demise of social media and communities.

Then people will just circumvent that by using a VPN. Using a VPN for that purpose does not break any laws in either the EU or the United States, no matter what some commenters over on Techdirt have told me. For it to be a DMCA violation, you have to be making money, that is what the “commercial or private financial gain” part of it means. And the CFAA does not apply, because you are not breaking a password. In order for it to be “unauthorized access”, you have to be using a cracked, stolen, or otherwise illegally obtained password. So you could not be criminally charged in the United States for bypassing geoblocking.

If Article 13 is fully implemented in Europe, VPN trade will boom and there would be a very big change in the Internet. We should not give it a chance and take action before it is too late. Europe does not listen to its people, the EU creates its own laws and implements them against the will of the people. This is no longer a democracy.