Piracy Costs the Indian entertainment Sector Rs 22,400 Crore a Year

According to a recent analysis by EY and the Internet and Mobile Association of India (IAMAI), 51% of customers access pirated content, resulting in yearly losses of Rs 22,400 crore for the entertainment sector in India.

The research, called "The Rob Report," emphasizes the increasing danger that piracy presents to the media and entertainment industry and urges prompt action to combat it.

Given that 62% of customers think tougher enforcement actions are required to tackle it, piracy is still a major worry. According to the survey, OTT platforms cause losses of Rs 8,700 crore, while pirated content from movie theaters causes losses of Rs 13,700 crore. Furthermore, an estimated Rs 4,300 crore in possible GST losses were calculated.

63% of pirated content is accessible through streaming services, making them the most impacted. The remainder comes from social media, pirate websites, and mobile apps. Users turn to piracy because to the expensive fees, difficulty maintaining multiple memberships, and lack of desired material, even if subscription revenues have increased by 150% since the pandemic.

"Piracy poses a serious threat to the growth potential of India's digital entertainment sector, which is expected to reach Rs 14,600 crore by 2026," stated Rohit Jain, Chairman of IAMAI's Digital Entertainment Committee. To protect this growth, government agencies, business leaders, and consumers must work together.

According to the report, 64% of people who currently watch illegal content would switch to free channels, even if they had advertisements. There is a high demand for free entertainment, as evidenced by the fact that 84% of respondents would rather not pay for movie tickets and 70% oppose paying for OTT subscriptions.

In order to fight piracy, EY's Partner and Forensic M&E Leader Mukul Shrivastava emphasized the necessity of improved cooperation and technology solutions. Even though efforts have been made, they are still dispersed. The industry must use technology to safeguard intellectual property while advocating for stricter laws and enforcement.

According to the survey, piracy is most prevalent among people between the ages of 19 and 34, with men preferring older films and women more likely to watch OTT programs. Furthermore, Hindi accounts for 40% of pirated content, with English coming in second at 31%. Due to restricted access to authorized content and a lack of knowledge about the negative effects of piracy, piracy is also more common in Tier II cities.

The main focus of deterrence measures has been on personal worries such moral dilemmas, potential legal repercussions, and virus phobias. To effectively tackle piracy, the research emphasizes the necessity for a comprehensive plan that includes global regulatory enforcement, improved pricing mechanisms, and extensive awareness efforts.