Italy: Losses to piracy in 2023 outweighed consumer spending for video entertainment

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According to Italy’s Federation for the Protection of Audiovisual and Multimedia Content Industries (FAPAV), Italians spent almost 3.6 billion euros on digital information and entertainment content in 2023, an increase of +5% year-on-year. Video entertainment represents the highest percentage of that spending, with a 44% share, worth about 1.6 billion euros with an annual growth rate of consumer spending estimated to be 7%.

But this share is offset by 1.7 billion euros, due to acts of audiovisual piracy.  One billion of this amount represents losses to media businesses.  The rest represents losses of jobs.

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“Today in Italy almost half of the population has carried out an act of piracy,” said FAPAV President Federico Bagnoli Ross. “The repercussions are very heavy, not only in terms of lost earnings by companies, but also in terms of job loss, which is estimated at about 10 thousand employees, since it weighs above all on the younger generations of workers in the sector,” he said

While not identified specifically by FAPAV’s statement, another form of loss is that of tax revenue to the government.  Furthermore, “When we talk about online criminals, we must also remember that most of these pirate services also cause a surge in cybercrimes, such as identity theft and access to sensitive databases, as well as the current accounts of those who use this illicit content,’ continued Mr. Bagnoli Rossi.

Consumer awareness campaigns

Outside the sphere of technical countermeasures are consumer awareness campaigns.  Earlier in February, FAPAV was involved in multiple campaigns designed to raise public awareness of the dangers associated with piracy.

One was “Il Cinema Siete Voi.” (“The Cinema is You”), a campaign with six 30-second video advertisements about different video genres, and using the voices of Italian celebrities. It was promoted by FAPAV in collaboration with ANEC, ANICA, MPA and supported by Deluxe.  It also discouraged the practice of camcording, noting that 90% of theatrical releases are stolen from theatres that way.  A media kit is available available via the site www.ilcinemasietevoi.it

Another was annual World Network Security Day 2024, highlighting risks that Internet users may be exposed to when accessing stolen content.  According to IPSOS research commissioned by FAPAV in 2023, about a third of boys between 16-25 years of age stream pirated content via illegal streaming.

“(By) using unauthorized content, (users) expose themselves to many risks, including viruses, malware and theft of personal and banking data. Maximum must be the attention especially towards minors and young users,” said FAPAV’s Bagnoli Rossi.

Further reading

Italy’s Piracy Shield proves the Internet works.  Article. by Joe Green. February 29, 2024. T_HQ Technology and Business

Video Entertainment in Italy is Worth 1.6 Billion Euros.  Press release. February 9, 2024. Federation for the Protection of Audiovisual and Multimedia Content Industries (FAPAV)

The campaign ‘You are the cinema,” kicks off.  Press release. February 1, 2024. Federation for the Protection of Audiovisual and Multimedia Content Industries (FAPAV)

Safer Internet Day 2024, world day for security on the Net.  Press release. February 6, 2024. Federation for the Protection of Audiovisual and Multimedia Content Industries (FAPAV)

Why it matters

Technical countermeasures are not the only solutions against piracy.  FAPAV’s Bagnolii Rossi added that “…Communication campaigns and educational actions to counter the phenomenon of piracy. We’ve launched many projects over the years, including involving the content creators themselves, making a true shared growth path. Among them is the upcoming ‘We Are Stories 2’ campaign, to support new talent.”

Not to mention legitimate service and programming offers that appeal to consumers to the extent that they outweigh the appeal of piracy sources.

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