The biggest problem with this straw man argument is that copying software is not zero sum. The movie studios do not lose exactly X dollars because there were Y downloads from Megaupload, or from any other copyright infringing site for that matter. Copying data is not the same as theft because there is no transaction cost and you haven't "deprived" anyone of any good. There is no way to prove that an infringer would have consumed that data if it hadn't been free.
Sure, having users pay full price for a movie (or CD or video game, etc.) is always the most desirable outcome. What's far worse than having someone infringe upon your copyright is for your media property to be completely unwatched or unused. When you're in the entertainment business, there's absolutely nothing worse than no one caring about what you're producing. A lot of people in the are starting to figure this out; look at how successful bands like Iron Maiden (on HN today) have been.
With that said, yeah, MU is pretty sleazy, but I'm not sure I would go so far as call them "criminal". They really were fulfilling a need which wasn't being delivered by the various media companies. I have no idea why movie studios can't figure out how to properly segment their market and charge different prices for different types of content delivery. The hyperbole about calling copyright infringers "pirates" and calling what they do "theft" has to stop, along with the lobbying government for draconian laws which stop reverse engineering. Provide better ways for your customers to not be copyright infringers and you'll have happier customers and more revenue.
Sure, having users pay full price for a movie (or CD or video game, etc.) is always the most desirable outcome. What's far worse than having someone infringe upon your copyright is for your media property to be completely unwatched or unused. When you're in the entertainment business, there's absolutely nothing worse than no one caring about what you're producing. A lot of people in the are starting to figure this out; look at how successful bands like Iron Maiden (on HN today) have been.
With that said, yeah, MU is pretty sleazy, but I'm not sure I would go so far as call them "criminal". They really were fulfilling a need which wasn't being delivered by the various media companies. I have no idea why movie studios can't figure out how to properly segment their market and charge different prices for different types of content delivery. The hyperbole about calling copyright infringers "pirates" and calling what they do "theft" has to stop, along with the lobbying government for draconian laws which stop reverse engineering. Provide better ways for your customers to not be copyright infringers and you'll have happier customers and more revenue.