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They are used for downloading the newest movies, audio albums, adult content, books, software...
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while that is one of the usages
it is also used to distribute GPL/GNU content/creative commons (linux , pod and vidcasts, demo games)
torrents are used because it cuts down on bandwidth costs , instead of one central server uploading the content to ppl who are downloading , you can spread the full package out over serveral home pc's that people have opened up , thereby cutting down on bandwidth costs