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Frederick Huntsberry - COO of Paramount Pictures - HCL Conference 2010

(Notes from Frederick’s presentation)

CyberCrime has graduated to a “for profit” business
Used to be about bragging rights
CyberCrime Piracy Websites – now part of mainstream
Ownership can be traced back to organized crime
4 clicks to download pirated movies
Eg- google search for “watch movies online”
First result is a pirate web site – “pirate leach site”
Hulu is the only legitimate web site on the Google page
Click on first web site – search for “Shutter Island”
You will view all the locations in which the movie file is located
All pirated content
Click first link takes you to DivxLink – will play Shutter Island movie
Sound quality very good; legitimate look and feel; premium advertisers and financial institutions; streaming vs download

Hard to distinguish good guys from the bad guys
pirate sites in some cases look more attractive than legal sites
Tremendous number of jobs at risk; wages; taxes
Not just movies but all intellectual property
Some sites are directly tied to organized crime, child porn

Example of some of the sites: tremendous number of users; 60-80M users per month
$30-400M in revenue
No product costs
Credit card companies are enablers; Visa and Mastercard
Logos like McAfee are put on the site but not legitimate
New streaming technology also allows spyware, malware, etc
Eg - Yahoo Ad “Download Movies for $1” with www.redbox.com which is a legitimate company; however the link takes you to ZML.com

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