By Andrew Bunten, COO of Video Entertainment at Irdeto
Live sports piracy has evolved into a sophisticated operation, often functioning as organized crime. Pirate services now present themselves as legitimate businesses, winning the trust of audiences by offering recent and high-quality content at a lower cost. These illicit services often use reputable payment providers such as PayPal, Mastercard, and Visa, which inadvertently lends them a veneer of authenticity and makes it easier for them to attract and retain customers.
The global cost of digital piracy is estimated to reach $318 billion by 2027, according to Statista. In the sports industry, losses due to piracy can be substantial. For instance, a single high-profile sporting event can lose millions of dollars in revenue to illegal streaming.
In our survey conducted in 2018, we examined 400 pirate Internet Protocol Television (IPTV) supplier sites and discovered that the majority openly promoted their payment options with reputable and legitimate payment institutions. In particular, Visa and MasterCard accounted for 21.6% and 21.3% respectively of all payment methods, with PayPal coming in at 14.7%, American Express at 9.4% and Discover at 7.0%.
Three years later, the Audiovisual Anti-Piracy Alliance’s study in 2021 showed that PayPal had taken the top spot with 17.3%, Mastercard was in second place with 14.7% of the market share and Visa was close behind with 14.1%. Although things have changed for the better, it does not seem to be enough.
Subscriptions and advertising are how pirates generate money and here is where the industry must focus its efforts. It is therefore critical to disrupt and neutralize their business models as much as possible, leaving them to rely on fringe payment platforms or preferably no payment platforms whatsoever.
The Return on Investment (ROI) on technologies that address payment disruption is clear. By ensuring that only paying customers can access live sports content, broadcasters can maintain the exclusivity and value of their broadcast rights, justify the high costs of acquiring these rights, and secure better deals in the future.
International cooperation
In addition to payment disruption, the fight against live sports piracy requires robust international cooperation. This global challenge transcends national boundaries, necessitating collaboration between rights holders, broadcasters, technology companies, and law enforcement agencies. Cross-border partnerships and joint operations have proven effective in dismantling piracy networks, as demonstrated by the European Union Intellectual Property Office’s (EUIPO) success in taking down over 4.4 million infringing websites.
Industry partnerships are equally important in combating piracy. Rights holders, broadcasters, and distributors must collaborate with cybersecurity firms and content creators to develop comprehensive anti-piracy measures. These partnerships enable a tailored response to piracy, ensuring robust content protection across all platforms and combating illegal access technologies.
By fostering international cooperation and leveraging advanced technology, the sports industry can mitigate the impact of piracy and safeguard valuable content. Ensuring a secure and fair digital environment for live sports is essential for the industry’s sustainability and growth in the digital age.
The data clearly demonstrates the financial impact of piracy and the effectiveness of strategies such as payment disruption and international cooperation in combating this issue. The sports industry must continue to invest in anti-piracy technologies and foster strong partnerships to protect its valuable content and ensure a sustainable future.
