Piracy paces up in India! India’s piracy economy stood Rs 224 billion in 2023, reveals EY-IAMAI Report
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.
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The size of India’s piracy economy was Rs 224 billion in 2023, ranking fourth against the segment wise revenue generated by India’s Media and Entertainment industry, reveals 'The Rob Report' released by EY and the Internet and Mobile Association of India (IAMAI). As per the report, Rs 137 billion out of Rs 224 billion was generated from pirated content from movie theatres while Rs 87 billion was generated from OTT platforms’ content.
The report highlighted that the potential GST losses of up to Rs 43 billion were estimated to have been incurred.
There is 150% rise in subscription revenue since the pandemic, however 51% media consumers in India access content from pirated sources. 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%.
The top three reasons for viewers to indulge in pirated content as per the report are managing multiple subscriptions, unavailability of desired content online and steep subscription fees.
Talking about the report, Rohit Jain, Chairman of the Digital Entertainment Committee at IAMAI, said, “The rapid growth of digital entertainment in India is undeniable, with filmed entertainment expected to reach INR 146 billion by 2026. However, this potential is severely threatened by rampant piracy. 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.”
The report highlights that 62% of pirated content consumers believe that stricter enforcement is what is required to tackle this menace while 64% pirated content consumers conceded they would opt for authorised channels despite ad interruptions, if it was provided without a charge. Meanwhile, 84% pirated content consumers said they do not like to purchase tickets to watch movies. 70% pirated content consumers claimed that they did not wish to purchase any OTT subscriptions.
The EY-IAMAI report also 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.
“The Media & Entertainment industry has been losing a significant portion of its revenue to piracy over the years. Several measures taken to combat this issue remain insufficient and fragmented and have not had a meaningful impact. It is crucial that different segments of the industry collaborate to mitigate piracy risk and push for stronger regulations and enforcement. Simultaneously, leveraging technology to combat the creation and distribution of pirated content will also be critical. This will ensure that original creators are able to protect their intellectual property and monetize what is rightfully theirs,” Mukul Shrivastava, Partner and Forensic M&E Leader, EY Forensic and Integrity Services added.
Notedly, piracy is more prevalent in Tier II cities compared to Tier I cities because of limited means of watching authorised content, easy access to pirated content, a lack of awareness about the perils of piracy, income disparity and inaccessible theatres. It is interesting to note that users in Tier I typically access pirated content to watch old films while those from Tier II cities watch illegitimate versions of recently launched films.
Moreover, entertainment industry ranked lowest when it came to reasons to avoid watching pirated content. More individualistic concerns like ethical considerations, legal consequences and fear of malware emerged as deterrents for people to engage in piracy.
