The European region’s media & entertainment ecosystem is integral to its economy, contributing more than 5% of the EU’s GDP and a similar percentage of its employment – not to mention its cultural and social contributions. The EU’s European Audiovisual Observatory estimated that the sector’s overall expenditures in 2022 amounted €20.8 billion, 35% of which was by broadcasters, followed by sports rights (28%) and acquired programming (26%).
A 2022 study by the Audiovisual Antipiracy Alliance (AAPA) estimated that pay TV operators lost €3.21 billion in 2021 due to illegal services that offered broader ranges of stolen programming, at prices attractive to consumers; not to mention the €1 billion in revenue captured by these illegal operators.
The real losses are higher: AAPA’s estimate did not include Web site or social media piracy. In Germany alone, for example, a separate study by VAUNet, the German Association for Private Media, estimated annual losses of €1.8 billion from live piracy.
Policy recommendations
The AAPA Manifesto makes several recommendations to policymakers:
- Introduce innovative data driven legislation to combat live content. Guidelines contained within the EU’s Digital Services Act (DSA) should be strengthened with consistent rules for rapid enforcement
- Strengthen the enforcement of the DSA to ensure that what is illegal offline is illegal online. AAPA proposes to become a process manager to ensure effective implementation of the DSA’s Trusted Flagger regime, and urges that the DSA address gaps in its ‘Know Your Business Customer’ process.
- Harmonize EU-level protection for audiovisual content to robust investment in original content and grassroots sports. AAPA notes that the EU’s Directive on the Enforcement of Intellectual Property Rights (IPRED) is not being uniformly appled, and sees the risk of the same happening with enforcement the EU’s AI Act. AAPA also recommends minimizing discretionary elements in the EU’s InfoSoc Directive.
- Tailor solutions to address piracy issues for key entities overlooked by previous legislation, including Content Delivery Networks (CDNs) and reverse proxies. Cloud providers/services that allow users to unlawfully upload content are not adequately addressed neither in the IPRED nor in the DSA framework.
- AAPA pledges to continue to represent a unified voice against anti-piracy with intermediaries willing to engage towards the betterment of the online environment
Piracy has extended impact
The AAPA report reminds us that “consumers often have limited understanding of the personal risks linked to consumption of pirated content. Illegal websites have become a gateway for criminals to infiltrate financial accounts and steal money, lure consumers into sophisticated financial scams, and expose children to adult content.”
AAPA’s 2022 study on Malware and Audiovisual Piracy found that “The impact of these malware infections can result in identity theft and fraud for the consumer, but also, lateral movement and further infection on any corporate network that they are connected to, such as remote working at home through a Virtual Private Network (VPN).”
Apps too
While not mentioned in the current AAPA Manifesto, AAPA has also published research about software (app) piracy which, in 2022, segmented illicit apps into four categories: Generic ‘IPTV’ players, custom-branded IPTV, live streaming sports, and streaming of movies and series TV programming. Android was found to have a 72% market share for pirate apps due to exploits to the Android Package Kit (APK). iOS has the remaining 28% share.
Further reading
Audiovisual Anti-Piracy Alliance 2024-2029 EU Manifesto. Press release (with link to the Manifesto document). October 1, 2024. Audiovisual Anti-Piracy Alliance (AAPA)
AAPA report: European media stakeholders lost €3.21 Billion to streaming piracy in 2021. Article. by Steven Hawley. December 14, 2022. Piracy Monitor
Germany: Illegal use in 2022 up 180% over 2018, costing German economy €1.8 billion/yr. Article. By Steven Hawley. January 25, 2023. Piracy Monitor
AAPA malware report: Ransom demands, hijacking among the many cyber risks to European consumers. Article. by Steven Hawley. September 20, 2022. Piracy Monitor
AAPA: Illicit apps leverage every piracy business model; ad fraud is the most lucretive. Article. by Steven Hawley. June 19, 2023. Piracy Monitor.
AI Act: Wary of limitations, bias and errors, EC adds researcher guidelines. Article. by Steven Hawley. March 20, 2024. Piracy Monitor
Why it matters
AAPA emphasises that there are broader implications to piracy, extending beyond the immediate economic losses. Pirate services “undermine the financial viability of legitimate services, reduce the quality and diversity of content available to consumers, and weaken the overall economic fabric by evading taxation and social contributions. This, notwithstanding the fact that piracy is a sophisticated enterprise carried out by highly organised criminals,” they said.
“To mitigate these challenges, comprehensive support from political, legal, and administrative bodies is crucial. This includes enhanced legal frameworks to prosecute piracy, increased collaboration between industry stakeholders, and public awareness campaigns to reduce demand for pirated content. Without such support, the audiovisual sector will continue to face substantial obstacles, impeding its contribution to the EU economy and cultural landscape,” AAPA said.