Sweet, poetic justice!
The story doesn’t say whether the $1 million in revenue is from their shakedown operation or from continual cash infusions from their industry sponsors. It’s possible that the public might be exerting their rights to the point that there’s no shakedown money coming in at all. It’s encouraging to think that such a sleazy business model isn’t working despite the apparently foolproof premise of being paid both by the industry to shake down consumers and again by the victims of their extortionate demands.
I sincerely hope that this is a sign that this particular business model doesn’t work rather than that this company is an all-around scam. As nice as it is to see the entertainment goons get fleeced, I don’t want to see a relatively “honest” outfit make a go of it and really put the screws to consumers.
Must be all that money they’re paying the authors and other content creators!
Ok, not. Part of the problem businesses like this have is that (unlike so many businesses where they turn costs into externalities and keep the revenues) their primary value is the externalities, scaring the public into buying material that could easily be copied instead. I’m surprised they haven’t found a way to become a “non-profit educational foundation” or some-such dodge.
Might be worth buying a few hundred shares at that price. Wonders could happen if their model changed…
The previous SEC filing (S1) is an interesting read. Particularly, it reveals that both Rightscorp’s principals paid themselves 200K+ each in salaries and bonuses in 2013.
Sleaze isn’t lucrative? On which planet? Rightscorp’s mistake wasn’t sleaze - it was publicity.
The $1 million is operating revenue. From the Ars coverage: The company reported its Q3 earnings Friday afternoon, emphasizing its jump in revenue to $248,000. While that is an increase of $183,000 from the third quarter of 2013, company expenses totaled $1.05 million, up from $526,000 last year.
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