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Chronicles

The story behind the story

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After Megaupload Bust, Putlocker and RapidShare Pick Up Slack

The Feds shut down Megaupload two months ago, but browser-based filesharing hasn't slowed down.  It has just moved to other websites.  Before the takedown, Megaupload was the most popular web-based filesharing service — by far.

Wired Robert McMillan

Context & Ripple Effects

The January aftermath reporting on the warez scene already showed disruption rippling through pirate communities after federal authorities shut down Megaupload; two months on, Wired's data confirms the displacement pattern at the mainstream layer of web-based filesharing. Putlocker and RapidShare have absorbed activity that previously ran through what was by far the most popular browser-based locker.

Why it matters: this is an early read on whether a single high-profile takedown shrinks total infringing traffic or merely reroutes it. The confirmed gains at Putlocker and RapidShare point squarely at rerouting — the demand was never destroyed, it changed addresses.

First-order effects

  • Putlocker and RapidShare inherit Megaupload's displaced user base and upload volume overnight, making them the de facto leading destinations for browser-based filesharing.
  • Federal enforcers get a live test of deterrence theory: removing the top service did not suppress demand, so each remaining cyberlocker becomes the next candidate target.

Second-order effects

  • Surviving lockers face a choice between absorbing growth and throttling it — the more visibly they scale into Megaupload's shoes, the more enforcement attention and payment/hosting partner risk they attract.
  • Advertisers and payment processors serving cyberlockers reassess exposure, since concentration of traffic on fewer sites concentrates their own legal risk alongside it.

Third-order effects

  • If every takedown simply crowns a new leader, single-site enforcement gives way to structural responses — pressure on intermediaries, court tests of locker legality, and legislative framing — rather than serial raids.
  • The cyberlocker market consolidates around a smaller set of incumbents that must either legitimize or operate permanently in enforcement's shadow, reshaping how filesharing services price and present themselves.

The trend: High-profile takedowns are proving to redistribute filesharing traffic across surviving cyberlockers rather than shrink it, pushing enforcement from individual raids toward systemic pressure on the ecosystem.