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Update: Pirate Bay calls big revenue claims false

Written by Andre Yoskowitz (Google+) @ 04 Feb 2008 18:57 User comments (13)

Update: Pirate Bay calls big revenue claims false In an update to our article here, the infamous torrent tracker The Pirate Bay has fought back against claims that it makes $4 million USD revenue yearly based on advertisments.
Arstechnica, speaking to Peter Sunde, one of the admins of TPB, has commented on the allegations from Swedish authorities. "They do not want to even talk about charges so it's easier for them to just try to throw dirt at their opponents and to be honest, the things they've found regarding money is not even money that all together has something to do with The Pirate Bay. And some of the money is accounted for twice, because the money has been taxed, then sent to another company because that was the company that took care of the payments, and then sent back for paying bandwidth."

Sunde continued on to say that the IFPI's claim that revenue exceeds $3 million on revenue was overstated. Without revealing financial details, he argued that the "site's high bandwidth, power, and hardware costs eliminate the potential for profit". TPB, he says, operates at a loss.

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13 user comments

14.2.2008 20:16
tripplite
Inactive

yes good for them this was clearly incorrect i seriously doubt that they profit a single penny, i think it was just a shock move by the prosecution, a terrible lie

25.2.2008 12:30

Originally posted by tripplite:
yes good for them this was clearly incorrect i seriously doubt that they profit a single penny, i think it was just a shock move by the prosecution, a terrible lie
And you have evidence of that ? I have no doubt it is probably overstated by the prosecutors but the comment from the admin saying they operate at a loss is laughable also.

If they operate at a loss, why do they employ a private company based in switzerland to run their advertising accounts ?

If the 146th largest site in the world operates at a loss with all the advertising, t-shirt sales and donation appeals, then something is going seriously wrong particularly when they have over ten million members.

I don't believe that for one minute.

35.2.2008 13:15

Quote:
I don't believe that for one minute.
Believe it,it's called creative accounting :p

45.2.2008 13:19

Yeah, creative accounting. No way they would go through all this crap and risk jail time if they weren't making good money.

55.2.2008 16:43

Heh, can you imagine if TPB changed to be officially a Non-profit organization? They would be PROTECTED by these international laws that everyone is using to go after them.

It would mean that their revenue would be protected, as long as a certain percentage was published as going right back into their maintenance and server costs. the IFPI, RIAA, MPAA, they'd all be unable to even VIEW any of it.

Pirates FTW. >:)

65.2.2008 16:43

What Peter Sunde is saying is tantamount to an admission of money laundering. Five percent here, five percent there - it all adds up.

75.2.2008 18:44

Revenue simply means money brought in by operations, as opposed to profits or net income that is offset by expenses.
I think $4 million is a very probable number.

86.2.2008 10:00

THis Peter Sunde person is also a bit stupid and when he lies he shoots himself in the foot......I quote him ...

"And some of the money is accounted for twice, because the money has been taxed, then sent to another company because that was the company that took care of the payments, and then sent back for paying bandwidth."

Now I don't know of a single country in the world where you have to send payments and accounts off to be taxed to another company before you have included your operating expenses ( bandwidth ) especially when you are operatng at a loss. If they had made a loss like he claims then they wouldn't be paying tax would they ? Imagine filing a tax return and not deducting your main expense !!! ridiculous lies !!!!

The Pirate Bay has worked endlessly to create an image as the "defenders of freedom" and "champion of the P2P community" when in reality they have played them like a harp, made millions in advertising and then still had the balls to take donations off them.

As long as there are enough dreamy eyed ideological p2p freedom fighting kids out here who swallow every line that they throw at them, they will continue to rake in huge profits.

The ironic thing is that The Pirate Bay is the worst kind of advertisement for those p2p users who argue the cause that it is for fun, non-profit sharing - TPB is no different from those shady guys on the street corner selling rip off cds abd dvds by the thousand because the motivation is the same...let's make huge bucks by encouraging copyright theft - I jst wish p2p users would dedicate more time and support to those p2p sites which are clearly in it for the fun with no blanket advertising and donation drives all over the page.

This message has been edited since its posting. Latest edit was made on 06 Feb 2008 @ 10:03

96.2.2008 11:30

Who gives a shit if they're making money or not. Personally I hope they are.

I don't know what money has to do with this particular issue. It's just a tactic being used to make them look bad and some of you sheep mongers are falling for it.

The issue is if they are breaking any copyright laws? No.

Do they distribute any copyright material? No.

And no I'm not defending TBP..but when I smell bullshit, I'll call it what it is.

106.2.2008 16:30

Originally posted by xempler:
Who gives a shit if they're making money or not.

possibly all of those who argue ( as I did ) that p2p is a friendship network set up for purely non profit oriented sharing. I always thought that was the main argument for saying it was OK.
as for being a sheep monger and the money issue being a tactic to make them look bad - well then i'm happy to be a sheep monger because I also call it as I see it and for me, to ask your members to donate money out of their own pockets to fund a campaign for the Pirate Bay to buy its own country etc and other bullshit excuses to rake in extra cash when you are already stacking up millions is the real criminal offence here.

117.2.2008 10:54

Quote:
Originally posted by xempler:
Who gives a shit if they're making money or not.

possibly all of those who argue ( as I did ) that p2p is a friendship network set up for purely non profit oriented sharing. I always thought that was the main argument for saying it was OK.
as for being a sheep monger and the money issue being a tactic to make them look bad - well then i'm happy to be a sheep monger because I also call it as I see it and for me, to ask your members to donate money out of their own pockets to fund a campaign for the Pirate Bay to buy its own country etc and other bullshit excuses to rake in extra cash when you are already stacking up millions is the real criminal offence here.


I get that argument but this is about torrent sites. It's not a pure p2p system like Limewire or Kaaza. They do need money to pay for bandwidth, servers and operating costs...and of course money for a legal defense when governments and big Hollywood/Music organizations start gunning for them. All that is paid for by donations and some advertising cost, which some people are glad to help them out with.

You talk like they're ripping people off. The Swedish govn't is saying they are making millions not them...of course governments don't lie right? Pirate Bay has stated they are actually operating at a loss. I'm more inclined to believe them.

In fact, just recently on their site, they asked people to "NOT" send them any money, especially for their legal defense. They said they had it covered but thanked everyone for their support. That doesn't sound to me like an organization that's looking to make tons of money.

1228.2.2008 0:22

Quote:
Sunde continued on to say that the IFPI's claim that revenue exceeds $3 million on revenue was overstated. Without revealing financial details, he argued that the "site's high bandwidth, power, and hardware costs eliminate the potential for profit". TPB, he says, operates at a loss.
Nice rebutle :)

1328.2.2008 18:10
tripplite
Inactive

Quote:
Originally posted by tripplite: yes good for them this was clearly incorrect i seriously doubt that they profit a single penny, i think it was just a shock move by the prosecution, a terrible lie

And you have evidence of that ? I have no doubt it is probably overstated by the prosecutors but the comment from the admin saying they operate at a loss is laughable also.

If they operate at a loss, why do they employ a private company based in switzerland to run their advertising accounts ?

If the 146th largest site in the world operates at a loss with all the advertising, t-shirt sales and donation appeals, then something is going seriously wrong particularly when they have over ten million members.

I don't believe that for one minute.

no if you see the guys running it there on wits end for where to turn for money, the operation costs of the website are extreme, no i believe more then the dirty lairs (lawyers)

if you see the guys in charge they can barely afford a clean suit

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