[cincinnati65]

So by that premise, more people viewing the video/pictures means lower damages on a per-person basis. I'm not sure that's how the legal concept of damages is supposed to work.

It makes it economically feasible for one of the perps who's viewed the video to post images from it on a billboard somewhere to increase the number of viewers and decrease his share of the damages, right?

[Cboldt]

Damages are supposed to make the injued person whole, not enrich them.

Punitive damages are as close to criminal punishment as civil law gets, and is technically a separate trial (usually held concurrently with the trial in chief). Punitive damages are to punish and deter.