When Pirates Pay, They Pay Good

Written by Ernesto on January 05, 2008 

Last week we reported on the release of Steal This Film 2, a documentary about the past, present and future of filesharing. The film is free to download, but people are encouraged to donate some money if they want to support future projects. Surprisingly, the pirates who decided to donate were quite generous.

When Pirates Pay, They Pay GoodSteal This Film 2 is produced by “The League of Noble Peers”. Part 2 is already a great success with over 150,000 downloads in the first 4 days. Interestingly, people are being very generous with their donations, which have already passed $5000.

When Part 1 was released, “The League of Noble Peers” asked downloaders to donate $1 (or more) if they wanted to support the project. Unsurprisingly, the vast majority donated just that. However, for the new release the majority donated $15 or more. Why? Well it could be that donators were motivated by a mystery gift they were offered when they gave more than $15, but there are alternative explanations as to why pirates may be more generous than people assume.

Jamie King, producer of the film gives the following explanation on his blog: “Over 90% of people donating are deciding to go over the artificial $15 threshold we set. But I don’t think people literally ‘want that gift’; I think they want an excuse to be generous!”

This could be true, the people who donate (still only a small percentage) are obviously dedicated to the cause, but there is more. It could also be that they donate more because they now don’t have an excuse to donate only $1, even pirates don’t want to look miserly. Most importantly perhaps, is that it shows that it can be wise to avoid psychological reactance, and leave the choice about what to donate or spend on a film or a music album up to the consumer. It is a challenge to build business models around free will and free content, but the Steal This Film project shows that there are opportunities.

Another interesting point raised by Jamie in his post is the need for alternative payment models. Sure, PayPal works but they take away too much money - it’s replacing one money sucking middleman with another. Take the Radiohead release for example, you could get the album virtually for free, but you still had to pay the credit card company nearly $1. This is probably why most people decided to pirate the album, instead of getting it for “free”. It seems that The Pirate Bay agrees on this, as they are working on a p2p based payment model that will probably be released by the and of this month.

TorrentFreak briefly talked to Brokep about this upcoming project a while ago, unfortunately we are not allowed to give you any more details, but it’s certainly an interesting project with a lot of potential. Brokep did reveal a bit on Jamie’s blog as he said: “I think that people will pay if there’s a simple solution. The payment solutions of today are not built for the new, network economy — they’re built around the old one. As we move away from the old economy, we’re here without a new payment solution.”

We will definitely keep you informed on this upcoming project. BitTorrent opens up possibilities for independent filmmakers. Distribution costs are now non-existent, and new business models are slowly starting to emerge. The future of film making looks bright and will be in part funded and formed by the innovators who were once called pirates.

Previously: YouTorrent: Great New BitTorrent Search Engine

Next: Oscars Veteran Resigns Over DVD Screener Piracy Threat

47 Responses

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1 Jan 05, 2008 at 17:25 by Anonymous

nice nice! :) Cant wait for the next one.

Death to the leeching middle hands!
Hope the system is easy and will spawn more creators into being active in their own distribution and things by themselves instead of wasting income for others to do it ;)

2 Jan 05, 2008 at 17:29 by Deimon

Sounds interesting!

3 Jan 05, 2008 at 17:52 by yo

i gave five bucks before i even watched the film.

why five? cause 15 is too much, and i really didn’t think they’d actually mail me any little trinkets anyway… the shipping alone would be more than 5 bucks anyhow….

also, that swarm was huge. i got my file super-quick BUT i didn’t feel like seeding at all, so i may have subconsciously guilted myself into chipping in the 5 bucks.

$5K for 150,000 downloads is a pittance. sure, some were generous, but most were complete scroooges.

peace!

4 Jan 05, 2008 at 17:59 by b

Fascinating, especially the link to the reactance article. I’ve observed the same effect myself, but didn’t know it had a name.

I guess we can now summarize the two forms of distribution as:

Torrent your work (”new” media): Free download + publicity for doing something new + voluntary donations
Release a CD/DVD (”old” media): Free download anyway + legal threats + alienation of fans + reactance + donations only with high overhead (manufacturing, shipping, middlemen)

I know which way I’d like to release MY content…

5 Jan 05, 2008 at 18:01 by TotalW

Was a pretty good movie!

6 Jan 05, 2008 at 18:01 by zarathustra

Bloody brilliant documentary! Production values are a thousand times more professional than the first part.

As good as anything broadcast on the gogglebox these days.

Roll on Part Three. =]

7 Jan 05, 2008 at 18:04 by Poe

Amazing!

Really looking forward to see what kind of payment-method TPB will release! :)

8 Jan 05, 2008 at 18:28 by Hemanth

“and of this month” should be “end of this month” I think
:)

9 Jan 05, 2008 at 18:57 by League Of Noble Peers

re. comment 3: we WILL be sending out the gift packs! the reason it’s $15 and not $10 is that $5 was worst case scenario postage and packing.

10 Jan 05, 2008 at 19:55 by Aabra

When Pirates Pay, They Pay WELL

I speak English really good. :-/

11 Jan 05, 2008 at 22:13 by This is ridiculous...

[quote comment="256013"]When Pirates Pay, They Pay WELL

I speak English really good. :-/[/quote]

No shit…that was my first thought, also.

“When Pirates Pay, They Pay Real Goodly Like”….duuurrrrr….

12 Jan 06, 2008 at 00:16 by http://extremebittorrent.com

that’s a good documentary.

13 Jan 06, 2008 at 00:18 by whowishes

ok, I really like to pay if I like what I watch but not beforehand. I didn’t watch any of the steal this movie series but I watched “Man from Earth” and I really liked it and I wanted to pay at least price of a theater ticket but this is not easy, if you live in my country you still need credit card to pay by paypal and I don’t have a credit card and I don’t like credit cards. Easy way of paying would be great.

14 Jan 06, 2008 at 02:16 by Anonymous

WAN DAR PIRAZTZ PAI, DEMZ PAIZ REL GUD LIKE, YA NO?

It’s great that people are supporting STF.

15 Jan 06, 2008 at 03:20 by notque

The league of noble peers (us), needs to create our own digg.

Come on, step up. Digg is corporate controlled, people are banned without reason.

We need participant controlled social media. And Pirate Bay / League of Noble peers can help.

We decide the issues.

It can start off with open source pligg.

Email them and help the cause.

No corporate control. Freedom.

We need our own social media.

16 Jan 06, 2008 at 03:22 by Tino

Watch it hd and on your iphone/ipod

http://www.ilovextra.com

17 Jan 06, 2008 at 03:49 by Anon

“by the and of this month.”

change and to end

18 Jan 06, 2008 at 03:53 by rafiorly

People might donate now to such projects, like In Rainbows and this, because it is new, and quite revolutionary. However, in the future when this becomes normal, it won’t have as much impact and therefore it won’t gather as much money.

19 Jan 06, 2008 at 04:24 by Eli

Uh - the Radiohead album wasn’t “virtually free”, it was free as in people who didn’t want to pay for it didn’t pay a single cent. Unless you were paying money, you didn’t even provide credit card information, so there was no $1.00 fee involved.

20 Jan 06, 2008 at 04:33 by Ryan

“Take the Radiohead release for example, you could get the album virtually for free, but you still had to pay the credit card company nearly $1. This is probably why most people decided to pirate the album, instead of getting it for “free”.”

No, you didn’t - if you put in 0.00 as your amount to pay it didn’t even ask for your information.

21 Jan 06, 2008 at 04:39 by kye

“Take the Radiohead release [..] you still had to pay the credit card company nearly $1″

If you chose to pay $0, you weren’t asked for CC details, so that doesn’t make sense.

22 Jan 06, 2008 at 04:44 by Zoness

[quote comment="256241"]People might donate now to such projects, like In Rainbows and this, because it is new, and quite revolutionary. However, in the future when this becomes normal, it won’t have as much impact and therefore it won’t gather as much money.[/quote]

I suppose that is a possibility but I’m sure by then, long after the old regime of music is destroyed, we will have figured out a new revolutionary way to give artists a reasonable amount of money. Also don’t forget about merchendise and concerts!

23 Jan 06, 2008 at 05:13 by Folklorist Fatale

Awesome article! I knew there was a more scientific name for the underlying principles of reverse psychology! XD

Btw, let’s be sure that our quality doesn’t decrease with our expansion of quantity: it’s pay well. Good is an adjective. (Unless you were trying to emulate the Cowboy imitation by John Cleese at the end of “A Fish Called Wanda,” in which case you would be absolutely right.)

24 Jan 06, 2008 at 05:46 by Professa

Great documentary

I wonder if the new payment solution will be something like email money transfer (EMT). Send money to people with a simple email and security word.

http://www.interac.ca/consumers/productsandservices_ol_emt.php

25 Jan 06, 2008 at 06:04 by Skinned Mink

I can actually say I donated $48 to the cause. Why?

1. I had the money left over from Christmas that I had already decided was going to something.

2. I love ideas and their presentation was well done.

3. We need things that shake everything up every once in awhile. Change the way we look at things. We need creators. Yes, the same creators making music/books/art/movies.

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