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FEATURE
June 23, 2023
The rise of piracy
International research firm Parks Associates forecasts streaming services in the US could face a loss of $113 billion to piracy by the end of 2027.
The proliferation of streaming services has transformed the entertainment industry in recent years, providing audiences with a vast array of content at their fingertips. However, with the rise of these services has come an increase in piracy, as individuals look for ways to access content without paying for it. According to a recent report, streaming services are expected to face losses of $113 billion due to piracy by 2027.
Streaming services have become the go-to source for entertainment for millions of people around the world. From Netflix to Disney+, these services offer users access to a vast library of movies, TV shows, and other content for a monthly subscription fee. However, as the demand for these services has grown, so too has the problem of piracy.
Piracy refers to the unauthorised use or distribution of copyrighted material, such as movies or TV shows. While piracy has been a problem for decades, the rise of streaming services has made it easier than ever for individuals to access pirated content. With just a few clicks, users can find and download copyrighted material from a variety of sources, often for free.
The impact of piracy on the entertainment industry is significant. According to a report by Digital TV Research, streaming services are expected to lose $52 billion to piracy in 2022 alone. This figure is projected to increase to $72 billion in 2026 and $113 billion by 2027. These losses are a result of both direct revenue losses from pirated content and the reduced value of licensed content due to piracy.
The rise of piracy is not just a problem for streaming services; it also impacts content creators and distributors. When content is pirated, the creators and distributors of that content lose out on revenue that they would have earned if the content had been licensed and distributed legally. This loss of revenue can have a ripple effect throughout the industry, affecting everyone from writers and actors to producers and distributors.
In addition to the financial impact, piracy can also harm the quality of content available to consumers. When content is pirated, it often lacks the same level of quality as licensed content. This can lead to a decrease in the overall quality of content available to consumers, as creators may be less likely to invest in high-quality productions if they know that their content is likely to be pirated.
To combat piracy, streaming services and content creators have taken a number of steps. For example, many streaming services have implemented digital rights management (DRM) technologies that make it more difficult to pirate content. Additionally, some content creators have begun to release content exclusively on streaming services, making it more difficult for pirates to access their content.
Due to this issue, several video service providers may reduce the motivation for password sharing by restricting the number of users who can stream the service simultaneously. However, this will have a negative impact on the user experience for online video users and act as a deterrent to password sharing.
As of result, Netflix is introducing a feature that will allow users to share accounts for an extra fee, and Adobe launched “Prime Account IQ” to help providers identify when viewers are sharing credentials.
“The number of households who share account credentials and consume pirated content is rising. People are increasingly looking for new ways to satisfy entertainment needs,” said Sarah Lee, research analyst, Parks Associates, and contributor to the report. “Participation in sharing account credentials increased 48% since 2019.”
Despite these efforts, piracy continues to be a significant problem for the entertainment industry. As streaming services continue to grow in popularity, it is likely that piracy will continue to be a major issue, costing the industry billions of dollars in lost revenue.
The rise of streaming services has revolutionised the entertainment industry, providing consumers with more content than ever before. However, this growth has also led to an increase in piracy, which is projected to cost streaming services $113 billion by 2027. While the industry has taken steps to combat piracy, it remains a significant challenge that will require ongoing efforts to address.
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