[mooki]

They were uploading movies to megavideo and streaming them through divx using a plugin.

Difference between Ninjavideo and most other streaming sites is they didn't even try to hide behind safe harbor. Only people who could post links were staff and a handful of trusted uploaders. They plastered banners all over the front page advertising new movies (like "new dvd rip out today woot!"). Talked constantly about how they were pirates.

Even Piratebay comes of as timid and diplomatic. It was just a matter of time before something really bad was going to happen.

EDIT: They weren't just linking to videos, but admitting to uploading them.

[devs1010]

Thanks for the info, I really was in the dark about what they were doing and it had me a little scared as I was initially under the impression that it was a site where users were just posting links to content and I couldn't fathom how that would lead to jail sentences for the founders.