The Indian entertainment industry has been afflicted with piracy for several years. However, 62 per cent of pirated content consumers believe that stricter enforcement is what is required to tackle this menace.

According to The Rob Report released by EY and the Internet and Mobile Association of India (IAMAI), the size of India’s piracy economy was INR 224 billion (€2.467bn) in 2023, ranking fourth against the segment wise revenue generated by India’s Media and Entertainment industry.

Of this, INR 137 billion was generated from pirated content from movie theatres while INR 87 billion was generated from OTT platforms’ content. The potential GST losses of up to INR 43 billion were estimated to have been incurred.

Despite a 150 per cent rise in subscription revenue since the pandemic, The rreport reveals that 51 per cent of media consumers in India access content from pirated sources. Streaming emerged as the largest source of pirated content at 63 per cent, followed by mobile apps at 16 per cent, other avenues such as social media and torrent contributed 21 per cent.

Managing multiple subscriptions, unavailability of desired content online and steep subscription fees emerged as the top three reasons for viewers to indulge in pirated content.

“The rapid growth of digital entertainment in India is undeniable, with filmed entertainment expected to reach INR 146 billion by 2026,” stated Rohit Jain, Chairman of the Digital Entertainment Committee at IAMAI.

“However, this potential is severely threatened by rampant piracy. It is imperative for all stakeholders—government bodies, industry players, and consumers—to unite in combating this issue. Only through collective action can we ensure a thriving future for our creative industries,” he added.

However, 64 per cent of pirated content consumers conceded they would opt for authorised channels despite ad interruptions, if it was provided without a charge. Eighty-four per cent off such consumers said they do not like to purchase tickets to watch movies.

Further highlighting the Indian mindset of wanting good quality free content, 70 per cent  of  pirated content consumers claimed that they did not wish to purchase any OTT subscriptions.

“The Media and Entertainment industry has been losing a significant portion of its revenue to piracy over the years,” noted Mukul Shrivastava, Partner and Forensic M&E Leader, EY Forensic and Integrity Services. “Several measures taken to combat this issue remain insufficient and fragmented and have not had a meaningful impact.

“It is crucial that different segments of the industry collaborate to mitigate piracy risk and push for stronger regulations and enforcement. Simultaneously, leveraging technology to combat the creation and distribution of pirated content will also be critical. This will ensure that original creators are able to protect their intellectual property and monetise what is rightfully theirs,” he asserted.

The EY-IAMAI report revealed that 76 per cent of those who accessed pirated content belonged to the 19-to-34-year age group. Among those viewing pirated content, women preferred to watch OTT shows while men watched old, pirated films and renowned classics.

Forty per cent of pirated content is sought out in Hindi, closely followed by English content at 31 per cent. On an average, Indians spend nine hours weekly, consuming pirated content, out of which 38 per cent of the time is spent watching OTT content and 22 per cent is spent watching films.

Piracy is more prevalent in Tier II cities compared to Tier I cities. Limited means of watching authorised content, easy access to pirated content, a lack of awareness about the perils of piracy, income disparity and inaccessible theatres are some of the reasons for this contrast.

Tier I users typically access pirated content to watch old films while those from Tier II cities watch illegitimate versions of recently launched films, once again showcasing the unwillingness to pay for tickets.

Supporting the entertainment industry ranked lowest when it came to reasons to avoid watching pirated content. More individualistic concerns such as ethical considerations, legal consequences and fear of malware emerged as deterrents for people to engage in piracy.

According to the report. for India’s entertainment ecosystem to improve, it is imperative for the government and private players to take a unified stand against piracy. Policies need to evolve as swiftly as the piracy landscape. Stricter enforcement mechanisms must be set in place by both the government as well as private organisations.

Large scale awareness programs, watermarking premium content, innovations around pricing and bundling, forging international alliances all need to be done simultaneously to curb India’s growing piracy menace. An immediate regulatory overhaul and judicious enforcement action at a global scale will go a long way in taming this evil, .the report concludes.

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Categories: Articles, Business, Content, Piracy, Policy, Regulation, Rights

Tags: EY, Internet and Mobile Association of India, piracy