Even though revenue from legitimate streaming services had increased by more than 150% between the global COVID pandemic and 2023, more than half (51%) of India’s media consumers continued to access content from pirate sources.
In 2023, an estimated INR137 billion (~US$1.6B) in illicit revenue was generated from pirated content from movie theaters while INR87 billion (~US$990M) was generated from OTT platforms’ content. Loss of tax revenue was estimated at about INR43 billion (nearly US$500M).
Streaming emerged as the largest source of pirated content at 63%, followed by mobile apps at 16%, other avenues such as social media and torrent contributed 21%. This, according to The Rob Report, by the Internet and Mobile Association of India (IAMAI) and EY (Ernst & Young), India.
Managing multiple subscriptions, lack of availability for desired content online and high subscription fees emerged as the top three reasons for viewers to indulge in pirated content.
Pirate demographics
The EY-IAMAI report revealed that 76% 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. 40% of pirated content is sought out in Hindi, closely followed by English content at 31%. On an average, Indians spend nine hours weekly, consuming pirated content out of which 38% of the time is spent watching OTT content and 22% is spent watching films.
Piracy rates were higher in smaller population centers.
Paths to deterrence
Ethical considerations, legal consequences and fear of malware emerged as deterrents for people to engage in piracy.
The report said that for India’s entertainment ecosystem to improve, the government and private players are urged 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 on a global scale will go a long way in taming this evil.
Further reading
The Rob Report. Research report (PDF). Announced October 23, 2024. by the Internet and Mobile Association of India (IAMAI) and EY (Ernst & Young), India
INR224 billion lost annually to piracy majority call for stricter enforcement: EY-IAMAI Report. Press release. October 23, 2024. By EY (Ernst & Young, India)
Why it matters
The Indian entertainment industry has been afflicted with piracy for years. 62% of those consumers who access pirated content believe that stricter enforcement is the key to tackle the situation.
“The rapid growth of digital entertainment in India is undeniable, with filmed entertainment expected to reach INR146 billion by 2026. However, this potential is severely threatened by rampant piracy,” said Rohit Jain, Chairman of the Digital Entertainment Committee at IAMAI.
“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,” said Mr. Jain.
