Indian M&E industry loses Rs 22,400 crore annually to piracy: Report

According to a report by EY and the Internet and Mobile Association of India (IAMAI), the Indian Media and Entertainment industry incurs annual losses of around Rs. 22,400 crore due to piracy. It says that platforms that stream pirated content earn around Rs.100,000 monthly from ads.

As per the report, 51% of consumers consume content on pirated platforms. Piracy’s impact on OTT platforms incurs losses of around Rs 8,700 crores meanwhile theatres lose around Rs 13,700 crores. According to the report, in 2023 the piracy economy became the fourth largest in the media and entertainment segment generating around Rs. 22,400 crores.

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Illegal streaming platforms (63%) are the preferred source to access pirated versions of both OTT content and recent theatrical releases, followed by unregulated apps . Mobile apps (16%) have overtaken torrents as the preferred source for pirated content. Only 6% of the total pirated content was accessed through torrents. 10% of the total pirated content consumption takes place on social media due to the younger demographic present on social media, the content preference leans toward GEC programming that’s available on OTT platforms. Physical copies are now the least preferred source for pirated content with just 5% using it for both OTT and theatrical releases. 

According to the report around 63% out of the people surveyed stated that they would opt for authorised channels, even if interrupted by ads, provided it was available free of charge. 

“Consumers were willing to shift to legal consumption if the cost factor was removed or reduced. This emphasises the impact of pricing on consumer behaviour. Evolving monetisation strategies like ad-supported content might be an effective way to combat piracy,” states the report. 

“The OTT industry has been pumping millions to create originals and titles with exclusive content. With content piracy encroaching into the direct earnings from the releases, the industry continues to bleed revenue and subscribers. While putting a dent on the OTT ecosystem, many pirated websites and peer-to-peer networks that offer pirated material also transmit malware or viruses, which can harm the user’s device or steal Personally Identifiable Information (PII).”

“ This malware spreads in parallel within a home or corporate network, potentially affecting critical business operations, and can be used as the launchpad for identity theft and identity fraud. Consumers are also at legal risk from signing up to proxy servers which may have been used to participate in DDoS and other attacks in the past. Piracy is a complex web that engulfs every variable involved in the equation,” says Abhishek Joshi, an industry analyst. 

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A representative of a leading entertainment OTT platform states that, “The absence of maturity and control over piracy makes it hard for the industry to sustain. One of the key components of an effective enforcement program is consequences. Something can be illegal but if there are no (immediate/ real) consequences imposed by law, via civil litigations and penalties, then it is hard to expect compliance.” 

Mukul Shrivastava, EY’s Partner and Forensic M&E Leader, emphasised the need for stronger collaboration and technological solutions to combat piracy. “While efforts have been made, they remain fragmented. It is essential for the industry to push for stronger regulations and enforcement while leveraging technology to protect intellectual property.”

According to the report, piracy is most common among individuals aged 19-34, with women more likely to consume OTT shows, and men inclined towards older films. Additionally, 40% of pirated content is in Hindi, followed by 31% in English. Piracy is also more prevalent in Tier II cities due to limited access to authorised content and lower awareness of piracy’s consequences. 

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